Olin Completes $417M Pioneer Purchase

NEW YORK (AP) -- Chemical and metal products maker Olin Corp. completed its $417 million acquisition of chlorine producer Pioneer Cos., the companies said Friday.

Under the terms of the deal, announced in May, Pioneer shareholders will receive $35 for each share they own. The purchase price represents a 19 percent premium over the company's stock price before the deal was made public.

Pioneer had about 11.9 million shares outstanding on Aug. 9, the date it filed its most recent quarterly report. The company's shares will stop trading at the close of business Friday.

The purchase will strengthen Olin's business producing chlorine, bleach and other products for the water treatment, plastics, paper and fabric industries. Other Olin business segments produce metal products and Winchester rifle ammunition. The Clayton, Mo.-based company employs about 6,000 people.

Olin spokesman Larry Kromidas said the company continues to expect the purchase will add to earnings immediately and save the combined company $35 million per year.

In June, Olin opened two lines of credit valued at a combined $250 million to help pay for the acquisition.

Standard and Poor's Ratings Services cut Olin's corporate credit and senior unsecured debt rating Wednesday afternoon to "BB+" from "BBB-" with a stable outlook. The ratings agency said the downgrade reflects "a diminished business profile because of increased earnings volatility" resulting from the deal.

Pioneer operates four chlor-alkali plants and several other facilities that produce chlorine, caustic soda, bleach, hydrochloric acid and related products.

Pioneer's plants will all remain open, but the company's headquarters in Houston will close by the end of the year, said Elaine Patterson, a spokeswoman for Olin's chlor-alkali products division.

Most of Pioneer's 550 workers will keep their jobs, although some positions in Houston will be eliminated and others shifted to Olin Chlor-Alkali Products headquarters in Cleveland, Tenn., Patterson said. She did not say how many jobs would be cut. The Houston headquarters employs about 50 people.

Olin shares rose 31 cents to $21.45 in early afternoon trading.

(This version CORRECTS value in headline)