Olin Acquires PolyOne's Interests in SunBelt Partnership
CLAYTON, Mo., Feb. 28, 2011 /PRNewswire/ -- Olin Corporation (NYSE: OLN) announced today that it has acquired PolyOne Corporation's 50% interest in the SunBelt Chlor Alkali Partnership for $132.3 million in cash plus the assumption of a PolyOne guarantee related to the Partnership debt. With this acquisition Olin becomes the 100% owner of SunBelt. The parties have also agreed to a three year earn out based on the performance of SunBelt. At December 31, 2010 SunBelt had $85.3 million of debt outstanding. In conjunction with this transaction Olin expects to record a non-cash, pretax gain, in excess of $80 million, associated with the revaluation of its existing 50% interest in the SunBelt partnership.
The SunBelt chlor alkali plant, which is located within Olin's McIntosh, Alabama facility, has approximately 350,000 tons of membrane technology capacity. During 2010 the Partnership generated approximately $70 million of earnings before interest, taxes, depreciation and amortization (EBITDA). Olin expects the acquisition to be accretive to EBITDA and earnings in 2011.
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