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Olin Closes Small Caliber Ammunition Manufacturing Assets Buyout

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Olin Corporation (OLN - Free Report) announced the completion of the buyout of AMMO, Inc’s small caliber ammunition assets. The acquisition of the assets was announced in January 2025. The assets, employees and ammunition business have now become part of Olin’s Winchester ammunition business. 

The acquisition included brass shell case capabilities and a newly constructed 185,000 square foot production facility located in Manitowoc, WI. The transaction was funded through OLN’s available liquidity. It is anticipated to realize synergies and deliver an incremental expected first-year adjusted EBITDA of $10 million to $15 million.

The facility and its skilled employees complement Winchester's existing production capabilities, allowing greater specialization and extended participation across a variety of high-margin, specialty calibers.

Winchester’s economies of scale, raw material sourcing and loading capabilities will be leveraged to realize synergies. The full integration is expected to yield adjusted EBITDA of $40 million per year. By the third year, OLN is expected to have paid one and a half times adjusted EBITDA for these world-class assets.

The Manitowoc facility will expand OLN’s reach into higher-value commercial, as well as international military and law enforcement calibers, while deepening near-full integration across the ammunition-value chain. 

OLN stock has lost 61.2% over the past year compared with the industry’s 27.6% decline.

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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 Carpenter Technology Corporation (CRS - Free Report) , DRDGOLD Limited (DRD - Free Report) and Idaho Strategic Resources, Inc. (IDR - Free Report) . While CRS sports a Zacks Rank #1 (Strong Buy) at present, DRD and IDR carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Carpenter Technology’s current fiscal-year earnings is pegged at $6.95 per share. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 15.7%. CRS’ shares have soared 115.7% in the past year.

The Zacks Consensus Estimate for DRD’s current-year earnings is pegged at $1.06 per share, indicating a 29.3% year-over-year rise. Its shares have soared 109.2% in the past year.

The Zacks Consensus Estimate for IDR’s 2025 earnings is pegged at 78 cents per share, indicating a rise of 16.4% from year-ago levels. IDR’s earnings beat the consensus estimate in three of the trailing four quarters while missing once, with the average surprise being roughly 77.5%.

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