Olin to Sell Metals Division for $400M
Monday October 15, 6:03 pm ET
Olin to Sell Metals Division for $400 Million to Unit of Global Brass and Copper Holdings
CLAYTON, Mo. (AP) -- Olin Corp. said Monday it agreed to sell its metals business to a unit of Global Brass and Copper Holdings Inc. for $400 million in cash.
The unit, which generated $2.1 billion in revenue and $58 million in profit in 2006, accounted for nearly two-thirds of the company's sales last year. The deal is subject to antitrust clearance but does not need to be approved by shareholders.
The sale includes the company's manufacturing facilities in East Alton, Ill.; Montpelier and Bryan, Ohio; Waterbury, Conn.; and Cuba, Mo., and its A.J. Oster metals service centers. The division employs 2,900 people.
Olin expects to book a related loss of $140 million in the third quarter. Earnings from continuing operations are expected to be 40 cents per share, and 12 cents per share from discontinued operations, the company said.
Analysts polled by Thomson Financial expect third-quarter income of 41 cents per share.
Global Brass and Copper Holdings is affiliated with private equity fund manager KPS Capital Partners LP.
Olin shares rose $1.37, or 6.1 percent, to $23.95 in after-hours trading. Earlier, shares closed down 48 cents, or 2.1 percent, at $22.58, but the stock hit a 52-week high of $23.10 during the session.
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