Olin Closes Small Caliber Ammunition Manufacturing Assets Buyout

Olin Corporation OLN 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.Image Source: Zacks Investment ResearchOLN’s Zacks Rank and Key PicksOLN currently carries a Zacks Rank #5 (Strong Sell).Some better-ranked stocks in the Basic Materials space are Carpenter Technology Corporation CRS, DRDGOLD Limited DRD and Idaho Strategic Resources, Inc. IDR. 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%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carpenter Technology Corporation (CRS): Free Stock Analysis Report DRDGOLD Limited (DRD): Free Stock Analysis Report Olin Corporation (OLN): Free Stock Analysis Report Idaho Strategic Resources, Inc. (IDR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks