Olin Corporation to acquire Chase Industries for 0.76 times revenue

Weekly Corporate Growth Report, May 20, 2002

The Deal: Olin Corporation has entered into an agreement to acquire Chase Industries in a stock transaction. Olin will issue .64 shares of its common stock for each share of Chase. The exchange will give Chase shareholders approximately $11.52 a share, based on the value of Olin stock at the time the deal was announced. The deal still requires approval from the shareholders of both companies, as well as regulatory approval and other customary closing conditions.

Discussion: Chase Industries makes round and hexagonal brass rods used in plumbing fixtures, heating and air-conditioning components, industrial valves, auto parts, and other hardware. Company products are sold in both the United States and Canada.

Olin Corporation is divided into divisions which work metal, manufacture chemicals, and produce ammunition. The metal unit makes copper and copper alloy sheets, strips, foil, stainless-steel strips, and coinage metal. The chemical division manufactures chemicals used to make bleach, water purification and swimming pool chemicals, and pulp and paper processing agents. Olin also produces sporting ammunition under the Winchester brand.

The acquisition of Chase will provide Olin with additional technical, product development and marketing resources to expand its product line.