Olin Completes $413M Pioneer Purchase
Friday August 31, 12:09 pm ET
Olin Corp. Completes $413 Million Acquisition of Chemical Maker Pioneer Cos.
NEW YORK (AP) -- Chemical and metal products maker Olin Corp. completed its $413 million acquisition of chlorine producer Pioneer Cos., the companies said Friday.
Under the terms of the deal, announced in May, Pioneer shareholders will receive $35 for each share they own. The purchase price represents a 19 percent premium over the company's share price before the deal was made public.
Pioneer had about 11.9 million shares outstanding on Aug. 9, the date it filed its most recent quarterly report. The company's shares will stop trading on the Nasdaq Stock Market at the close of business Friday.
The purchase will strengthen Olin's business producing chlorine, bleach and other products for the water treatment, plastics, paper and fabric industries. Other Olin business segments produce metal products and Winchester rifle ammunition.
Olin spokesman Larry Kromidas said the company continues to expect the purchase will add to earnings immediately and save the combined company $35 million per year.
In June, Clayton, Mo.-based Olin opened two lines of credit valued at a combined $250 million to help pay for the acquisition.
Standard and Poor's Ratings Services cut Olin's corporate credit and senior unsecured debt rating Wednesday afternoon to "BB+" from "BBB-" with a stable outlook. The ratings agency said the downgrade reflects "a diminished business profile because of increased earnings volatility" as a result of the deal.
Pioneer, based in Houston, operates four chlor-alkali plants and multiple other manufacturing facilities that produce chlorine, caustic soda, bleach, hydrochloric acid and related products.
Olin shares rose 29 cents to $21.43 in midday trading.
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