In a move signaling further consolidation within the ammunition industry, on January 21, 2025, Olin Winchester, a large ammunition and chemicals manufacturer based in Clayton, Missouri, announced its intent to acquire the ammunition manufacturing business of Ammo Inc., which also owns GunBroker, the “eBay of guns.”
The $75 million asset purchase agreement includes Ammo Inc.’s 185,000-square-foot production facility and ballistic range in Manitowoc, Wisconsin, and all assets related to “designing, manufacturing, marketing, distributing and selling ammunition and ammunition components.” The sale is subject to customary closing conditions, such as obtaining necessary governmental approvals and the accuracy of representations and warranties made by both parties. The transaction is expected to close in the second quarter of 2025, pending the fulfillment of these conditions.
olin winchester’s growing portfolio
Olin’s Winchester division, established in 1866, is the largest producer of small-caliber ammunition for the U.S. military, and it operates the government’s nearly 4,000-acre Lake City Army Ammunition Plant.
As the operator of the Lake City facility, Olin Winchester is currently permitted to sell surplus military ammunition to civilians — particularly .223 Remington, 5.56mm NATO, and 7.62mm NATO rounds for AR-platform weapons — and a New York Times investigation revealed that Lake-City-produced ammunition had been used in at least 12 mass shootings involving AR-15s, including the Aurora, San Bernardino, Las Vegas, Sutherland Springs, Parkland, Buffalo, and Uvalde shootings.
Despite facing criticism after that reporting, Olin Winchester recently commenced construction of an additional 450,000-square-foot facility to produce 6.8x51mm ammunition for the Army’s Next-Generation Squad Weapon program.
With the purchase of Ammo Inc.’s ammunition business, Olin Winchester continues to expand its manufacturing capabilities for commercial ammunition sales.
AMMO INC.’s financial and legal turmoil
In recent years, Ammo Inc. has faced several financial and legal troubles:
- May 2023: Steven Urvan, the founder of GunBroker, filed a lawsuit against Ammo Inc. and its current and former officers and directors. Urvan alleged that he was fraudulently induced into selling GunBroker to Ammo Inc. in April 2021. The suit remains ongoing in Delaware Court of Chancery.
- September 2024: Ammo Inc. announced that its chief financial officer had resigned at the request of its board and that the company was retaining a law firm to launch an independent investigation into potential financial improprieties. Ammo Inc. also stated that “certain historical financial statements and auditors’ reports previously filed by the Company should no longer be relied upon.”
- September and October 2024: Several plaintiffs’ firms filed class-action lawsuits against Ammo Inc. on behalf of its shareholders, alleging that the company’s directors breached fiduciary duties.
- October 2024: Ammo Inc.’s stock price reached a 52-week low, with the company’s stock experiencing a 52.5-percent decrease over the past year.
- November 2024: The company received a deficiency notification from Nasdaq due to a delinquent quarterly regulatory filing. The delay was attributed to the ongoing independent investigation.
Offloading the company’s ammunition business will provide much-needed liquidity to fund these legal battles and financial challenges. After the close of the transaction, Ammo Inc. expects to “focus on growing and prioritizing” GunBroker and will rebrand with a new corporate name.