Olin Winchester breaks ground on 6.8mm ammunition facility at Lake City Army Ammunition Plant

Olin Corporation announced its Winchester division, in collaboration with the U.S. Army's Joint Program Executive Office for Armaments and Ammunition (JPEO A&A) and Joint Munitions Command (JMC), celebrated the groundbreaking of the new 6.8mm Ammunition Facility at the Lake City Army Ammunition Plant (LCAAP). This facility is part of the Next Generation Squad Weapons (NGSW) Program and represents a significant step in the Army’s modernization efforts.

“Olin Winchester has a rich history in ammunition manufacturing excellence and support of the U.S. Military,” says Ken Lane, Olin President & CEO. “We're proud to build on this American legacy through this opportunity to partner with the U.S. Army to construct this transformational facility and bring new capabilities to the Warfighter.”

The ceremony featured remarks from Ken Lane, Maj. Gen. John T. Reim, Joint Program Executive Officer for Armaments and Ammunition, and Brett Flaugher, President of Winchester. Liz Miranda, U.S. Army Material Command's (AMC) Executive Deputy to the Commanding General, Brigadier General Ronnie Anderson, Commander of the Joint Munitions Command (JMC), Staff from Congressman Sam Graves and Senator Eric Schmitt's office, and other federal, state, and local representatives were among the more than 100 special guests in attendance.

“This facility will represent a significant step forward in equipping our Soldiers with the advanced munitions they need to maintain overmatch on the battlefield,” notes Maj. Gen. John T. Reim. “With 90% of the work supported by industries in the Kansas City region and nearly 50 local businesses involved in the construction, this project will strengthen the defense industrial base, create well-paying jobs, and drive economic growth in the local community. Lake City has been central to our nation's ammunition production since 1941, and this facility builds on that proud and historic legacy.”

The 450,000ft² advanced ammunition production facility will be capable of manufacturing all components of 6.8mm ammunition as well as finished rounds for the U.S. military, reinforcing the iconic legacy of LCAAP and its vital role in national defense.

Also Olin Corporation entered a definitive agreement with AMMO, Inc. whereby Olin will acquire AMMO's small caliber ammunition manufacturing assets for a purchase price of $75 million. The transaction will be funded through available liquidity. The assets will become part of Olin's Winchester Ammunition business.

The acquisition includes AMMO's brass shellcase capabilities and their world-class, 185,000ft² production facility located in Manitowoc, Wisconsin, constructed in 2022. The Manitowoc facility and its employees will complement Winchester's existing production capabilities, enabling greater specialization and broader participation across high-margin specialty calibers. Once fully integrated with Winchester's industry-leading economies of scale and integration across the commercial ammunition value chain - from raw material sources, to projectiles, primers, and loading capabilities - the acquisition is anticipated to yield realized synergies of $40 million.

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

“As highlighted during our recent Investor Day, this investment continues the Winchester acquisition strategy, which began with our White Flyer acquisition in 2023, to identify and secure small bolt-on opportunities that are highly strategic and immediately accretive to Olin,” says Ken Lane, Olin's President and CEO. “We expect the Manitowoc assets to generate $15 million to $20 million of incremental adjusted EBITDA in the first year and, by the third year, we 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.