AMMO, Inc. (AMMO), an Arizona-based munition company best known for its STREAK Visual Ammunition line, has announced its intent to acquire online firearm marketplace GunBroker.com from IA Tech LLC. The transaction is reportedly worth $240 million.
Founded in 1999 by entrepreneur Steve Urvan, GunBroker.com changed how firearms, ammunition and accessories were sold online. In 2010, the company was ranked #1362 on Inc.’s Annual 5000 Rankings of the fastest-growing private companies in the country — finishing #4806 most recently in 2016. Today, GunBroker.com has become one of the world’s leading online marketplaces for guns and gear with 6 million registered users.
Striving to be a technology leader itself, AMMO and GunBroker.com share a similar desire to innovate and change the firearms industry.
“We founded AMMO to be a disruptive technology-based company that could serve the shooting community with cutting-edge ammunition offerings,” said AMMO Chairman and CEO Fred Wagenhals. “Steve Urvan had the foresight and entrepreneurial drive to start GunBroker.com more than 20 years ago with the same spirit and vision.”
Generating billions of dollars in cumulative sales in its 21-year history, GunBroker.com reported $60 million in revenue, including $40 million of EBITDA, in 2020. Paying four-times sales, AMMO sees the transaction as part of its vertical integration strategy.
In a separate corporate update, AMMO revealed that strategy includes a new ammunition and brass case factory in Wisconsin intended to triple manufacturing output and decrease operational costs. Capable of producing 750 million rounds of ammunition annually, AMMO recently reported a backlog of booked orders worth $180 million.
A publicly-traded company (Nasdaq: POWW), AMMO stock is up 17% since the GunBroker.com news was made public.
The completion of the transaction is subject to a number of conditions but is expected to close by March 31, 2021. AMMO will hold a Fiscal Third Quarter Earnings Call on February 16, 2021.
For more info: ammoinc.com, gunbroker.com
WRITTEN BY JOE KRIZ
