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Olin Inks Agreement to Acquire AMMO's Ammunition Assets for $75M
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Olin Corporation (OLN - Free Report) entered into an agreement with AMMO, Inc. to acquire its small-caliber ammunition manufacturing assets for $75 million. This transaction is expected to be financed through the company’s available liquidity. In the post-transaction closure, AMMO’s ammunition business will become a part of Olin's Winchester unit.
This transaction will include AMMO's brass shellcase capabilities and its 185,000-square-foot production facility, located in Manitowoc, WI. The facility and its employees are well-aligned with Winchester's existing production capabilities. This move is expected to help enable greater specialization and broader participation across high-margin specialty calibers while integrating with Winchester’s economies of scale and commercial ammunition value chain. The buyout is expected to deliver synergies of $40 million.
This acquisition is part of OLN-Winchester’s strategy to identify and secure small bolt-on opportunities that are highly strategic and immediately accretive to the company. The transaction is expected to be completed in the second quarter of 2025, subject to customary terms and closing conditions. OLN expects the Manitowoc assets to generate $15-$20 million of incremental adjusted EBITDA in the first year.
OLN stock has lost 33.4% in the past year compared with a 4.5% decline of the industry.
Image Source: Zacks Investment Research
OLN’s Zacks Rank and Key Picks
OLN currently carries a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for Ingevity’s current-year earnings is pegged at $2.75 per share. NGVT beat the Zacks Consensus Estimate in three of the trailing four quarters while missing it in one, with the average earnings surprise being 95.4%. NGVT’s shares have gained 9.9% in the past year.
The Zacks Consensus Estimate for Carpenter Technology’s current-year earnings is pegged at $6.77 per share. CRS beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 14.1%. CRS’ shares have soared 213.9% in the past year.
The Zacks Consensus Estimate for MAG Silver’s current-year earnings is pegged at 75 cents per share. MAG surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 17.1%. The stock has gained 65.9% in the past year.
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Olin Inks Agreement to Acquire AMMO's Ammunition Assets for $75M
Olin Corporation (OLN - Free Report) entered into an agreement with AMMO, Inc. to acquire its small-caliber ammunition manufacturing assets for $75 million. This transaction is expected to be financed through the company’s available liquidity. In the post-transaction closure, AMMO’s ammunition business will become a part of Olin's Winchester unit.
This transaction will include AMMO's brass shellcase capabilities and its 185,000-square-foot production facility, located in Manitowoc, WI. The facility and its employees are well-aligned with Winchester's existing production capabilities. This move is expected to help enable greater specialization and broader participation across high-margin specialty calibers while integrating with Winchester’s economies of scale and commercial ammunition value chain. The buyout is expected to deliver synergies of $40 million.
This acquisition is part of OLN-Winchester’s strategy to identify and secure small bolt-on opportunities that are highly strategic and immediately accretive to the company. The transaction is expected to be completed in the second quarter of 2025, subject to customary terms and closing conditions. OLN expects the Manitowoc assets to generate $15-$20 million of incremental adjusted EBITDA in the first year.
OLN stock has lost 33.4% in the past year compared with a 4.5% decline of the industry.
Image Source: Zacks Investment Research
OLN’s Zacks Rank and Key Picks
OLN currently carries a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks in the Basic Materials space are Ingevity Corporation (NGVT - Free Report) , Carpenter Technology Corporation (CRS - Free Report) and MAG Silver Corp. (MAG - Free Report) . While NGVT sports a Zacks Rank #1 (Strong Buy), CRS and MAG carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ingevity’s current-year earnings is pegged at $2.75 per share. NGVT beat the Zacks Consensus Estimate in three of the trailing four quarters while missing it in one, with the average earnings surprise being 95.4%. NGVT’s shares have gained 9.9% in the past year.
The Zacks Consensus Estimate for Carpenter Technology’s current-year earnings is pegged at $6.77 per share. CRS beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 14.1%. CRS’ shares have soared 213.9% in the past year.
The Zacks Consensus Estimate for MAG Silver’s current-year earnings is pegged at 75 cents per share. MAG surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average earnings surprise of 17.1%. The stock has gained 65.9% in the past year.