Olin to acquire Pioneer for $35/share

21 May 2007 14:19  [Source: ICIS news]

MUMBAI (ICIS news)--Olin has agreed to acquire Pioneer, a leading producer of chlor-alkali products, for $35 (€26) a share valuing the company at $411m, it said on Monday.

 

"With this acquisition, we will become the No 3 player in chlor-alkali and the No 1 player in industrial bleach in North America. The acquisition provides an improved platform from which to continue to grow our chemicals business," said the chairman, president and CEO of Olin Joseph Rupp.

 

The transaction is expected to be completed in the second half of 2007 and is subject to regulatory and Pioneer shareholder approval, the US-based Olin said in a statement.

 

Olin said it expects the acquisition to result in at least  $35m of annual cost savings and to be immediately accretive to the company’s earnings.

 

On a combined basis, Olin's and Pioneer's chlor-alkali businesses generated revenue of more than $1.1bn in 2006.

 

($1=€0.74)

By: Isha Jha
+65 6780 4359

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