By Lisa Kerner
Charlotte, N.C., May 21 - Olin Corp. reached a definitive agreement to acquire Pioneer Cos., Inc. for $35 per share in cash.
Both companies' boards of directors have approved the transaction, which is expected to close in the second half of 2007. A $15,634,552 termination fee is included in the agreement.
"The combined companies will have a more diversified geographic footprint, a complementary bleach and HCL product mix and a broader distribution network," Olin chairman, president and chief executive officer Joseph D. Rupp said in a company news release.
"With this acquisition, we will become the #3 player in chlor-alkali and the #1 player in industrial bleach in North America."
Olin expects the acquisition to result in at least $35 million of annual cost savings in the areas of logistics, purchasing, manufacturing costs and overhead.
Olin, located in Clayton, Mo., manufactures chlor alkali, metal and ammunition products for commercial and industrial markets.
Houston-based Pioneer manufactures chlorine, caustic soda, bleach, hydrochloric acid and related products.
| Acquirer: | Olin Corp.
|
| Target: | Pioneer Cos., Inc.
|
| Price per share: | $35.00
|
| Announcement date: | May 21
|
| Termination fee: | $15,634,552
|
| Expected closing: | Second half of 2007
|
| Stock price for target: | Nasdaq: PONR: $29.38 on May 18
|
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