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~ In a recent announcement, Olin Corporation (NYSE: OLN) revealed that it has reached a definitive agreement with AMMO, Inc. (NASDAQ: POWW) for the acquisition of AMMO's small caliber ammunition manufacturing assets. The purchase price for this transaction is set at $75 million and will be funded through Olin's available liquidity. These assets will become part of Olin's Winchester Ammunition business.

The acquisition includes AMMO's brass shellcase capabilities and their state-of-the-art production facility located in Manitowoc, Wisconsin. This 185,000 square foot facility was constructed in 2022 and is expected to complement Winchester's existing production capabilities. This will allow for greater specialization and broader participation across high-margin specialty calibers.

According to Brett Flaugher, President of Winchester Ammunition, "The Manitowoc assets will extend Winchester's leadership position and expand the reach and value of our near full integration." He also added that the acquired assets will enable their legacy plants to lower costs of existing high-volume products and increase their ability to participate in higher margin specialty rounds at a cost advantage.

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Ken Lane, President and CEO of Olin, stated that this investment aligns with their strategy to identify and secure small bolt-on opportunities that are highly strategic and immediately accretive to the company. He also mentioned that this acquisition is expected to generate $15 million to $20 million of incremental adjusted EBITDA in the first year and by the third year, they expect to have paid less than two times adjusted EBITDA.

The transaction is subject to customary terms and closing conditions and is expected to close in the second quarter of 2025. This move further solidifies Olin's position as a leading vertically integrated global manufacturer and distributor of chemical products. In addition, it strengthens their position as a top US manufacturer of ammunition.

For more information on Olin Corporation, visit www.olin.com. With their principal manufacturing facilities producing and distributing a wide range of chemical products and ammunition, Olin continues to be a key player in the industry.
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