Olin Will Acquire Chlor-Alkali Rival Pioneer

Olin has reached a definitive agreement to acquire chlor-alkali products maker Pioneer for $416 million. Subject to approval from Pioneer shareholders and government regulators, the deal should close in the second half of 2007. Olin says Pioneer's $500 million-plus in annual sales will give it chlor-alkali revenues of $1.1 billion, making it the third-largest chlor-alkali producer and the largest industrial bleach maker in North America. Dow Chemical and Occidental Chemical are the number one and two producers, respectively. Olin expects the deal will immediately add to earnings. Moreover, it should generate $35 million in savings, says Olin CEO Joseph D. Rupp, in part because Pioneer plants will improve Olin's geographic diversity and reduce the distances over which the company must ship chlorine and caustic soda. "The acquisition provides an improved platform from which to continue to grow our chemicals business," Rupp says.