US Olin completes sale of metals division

20 November 2007 22:24  [Source: ICIS news]

HOUSTON (ICIS news)--Shares of Olin were up slightly on Tuesday after the company completed the sale of its metals division to pay off debt from its acquisition of a competing chlor-alkali producer.

At the end of trading on Tuesday, shared of Olin were up 18 cents (+0.94%) to $19.31 (€13.13) on the New York Stock Exchange (NYSE).

In October, Olin announced it would sell its metals division to Global Brass and Copper and use the money to pay off debt accumulated in the acquisition of Pioneer earlier this year.

In a statement on Monday, Olin said the sale was completed for approximately $380m.

“We have made a tremendous start in the transformation of Olin into a more focused and more profitable company,” CEO Joseph Rupp said.

The sale includes all of Olin’s worldwide metals operations, including its manufacturing facilities in East Alton, Illinois; Montpelier and Bryan, Ohio; Waterbury, Connecticut; and Cuba, Missouri, as well as its AJ Oster metals service centres.

The Clayton, Missouri-based company said it expected to report a quarterly loss of $140m in conjunction with the sale.

Olin’s chlor-alkali segment produces chlorine and caustic soda, sodium hydrosulphite, hydrochloric acid, hydrogen, potassium hydroxide and bleach products.

The company’s other business segment produces ammunition.

Global Brass and Copper is an affiliate of the New York City private-equity group KPS Capital Partners.

($1.00 = €0.68)

By: Greg Holt
+1 713 525 2653

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