Olin Corporation · NYSE:OLN
Olin — Merger or Acquisition (May 2007)
13 slides from Olin's merger presentation, May 21, 2007
Slide 1: Olin Acquisition of Pioneer Companies: Investor Presentation
Olin Acquisition of Pioneer Companies: Investor Presentation May 21, 2007 Forward Looking Statements This communication includes forward-looking statements. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, forec
Slide 2: Agenda / Today's Participants
Agenda / Today’s Participants Joseph D. Rupp – Chairman, President and Chief Executive Officer John L. McIntosh – Vice President and President, Chlor Alkali Products Division John E. Fischer – Vice President and Chief Financial Officer Olin
Slide 3: Olin Corporate Strategy
Olin Corporate Strategy Olin Corporation Goal: Superior Shareholder Returns TRS in Top Third S&P Mid Cap 400 ROCE Over Cost of Capital Over the Cycle 1. Build on current leadership positions in Chlor-Alkali, Metals and Ammunition Improve operating efficiency and profitability Integrate downstream se
Slide 4: Pioneer: A High Value Acquisition, Consistent with our Strategy
Pioneer: A High Value Acquisition, Consistent with our Strategy Synergistic, bolt-on acquisition Enhances our chlor-alkali franchise #3 in chlor-alkali, up from #4 Diversifies geographic coverage Improves overall cost position #1 in industrial bleach Further low-cost expansion opportunities in the l
Slide 5: Transaction Summary
Transaction Summary Background Structure Olin Corporation to purchase Pioneer Companies for $35.00 per share Firm Value: $411 million Equity value of $418 million at the agreed purchase price Net cash position of $7 million assumed by Olin (cash of $129 million, total debt of $122 million) Financial
Slide 6: Pioneer: A Focused Company with Quality Assets
Pioneer: A Focused Company with Quality Assets Pioneer is focused exclusively on chlorine / caustic, bleach and derivatives World class operations St. Gabriel, LA: Strategically positioned with pipeline to Gulf Coast customers; expansion project lowers costs Becancour, PQ: Low cost hydro-power based
Slide 7: Financial Profile
Financial Profile Latest Twelve Months Reported Financials (as of March 31, 2007) Olin Pioneer Sales $3,192.4 $513.3 EBITDA $199.6 $92.7 Margin (%) 6.3% 18.1% EBIT $127.3 $68.3 Margin (%) 4.0% 13.3% Capex $80.2 $12.9 Total Assets $1,665.1 $453.3 Olin
Slide 8: Impact of the Combination on Olin
Impact of the Combination on Olin The combination would make Olin the third largest producer of chlor-alkali in North America Chlorine Capacity (-000- short tons) 5,000 4,000 3,000 2,000 1,000 0 4,780 3,484 1,992 1,856 1,218 880 774 471 430 371 Dow Occidental PF Olin and Pioneer PPG Olin Formosa Pio
Slide 9: Enhanced Operational and Geographic Platform
Enhanced Operational and Geographic Platform Strengthens Olin’s position in core businesses and adds a strong bleach business in the West Tacoma, WA Tracy, CA Santa Fe Springs, CA Henderson, NV St. Gabriel, LA McIntosh, AL Augusta, GA Charleston, TN Niagara Falls, NY Becancour, Quebec Dalhousie, NB
Slide 10: Pioneer's St. Gabriel Expansion Fits with Our Strategy
Pioneer’s St. Gabriel Expansion Fits with Our Strategy Project Summary Expansion of St. Gabriel capacity by 25% from 197,000 to 246,000 ECUs per year Convert to membrane cell technology Estimated cost: $142 million Expected completion by fourth quarter of 2008 St. Gabriel Project Fits with Olin’s St
Slide 11: Focused Integration Plan Will Allow Us to Achieve $35 mm of Synergies
Focused Integration Plan Will Allow Us to Achieve $35 mm of Synergies $35 million of readily achievable synergies Synergies will come from logistics, purchasing, operations and SG&A expenses By the end of year 1 we expect to be at a $20 million run-rate Full run-rate by end of year 2 Olin
Slide 12: Financing Strategy
Financing Strategy Financing will consist of: Cash on balance sheet at both companies $250 million, fully committed 364-day facility from Citigroup $300 million committed, 5-year accounts receivable securitization facility Upsizing and extending revolver from $160 to $250 million Financing plan prov
Slide 13: Pioneer: A High Value Acquisition, Consistent with our Strategy
Pioneer: A High Value Acquisition, Consistent with our Strategy Synergistic, bolt-on acquisition Enhances our chlor-alkali franchise #3 in chlor-alkali, up from #4 Diversifies geographic coverage Improves overall cost position #1 in industrial bleach Further low-cost expansion opportunities in the l