CLAYTON – Olin Corp., a Clayton, Mo.-based producer of copper alloys, will buy K.A. Steel Chemicals Inc., a chemical manufacturer located near Chicago, for $328 million in cash.
KA Steel posted revenues of $435 million and net income of $31 million for 2011. Olin Corp. said it expects the acquisition to create $35 million in extra earnings over the next three years by expanding Olin’s bleach manufacturing operation by 20% and increasing Olin’s market reach in sales of hydrochloric acid, potassium hydroxide. Olin Corp. also said it could save $60 million in taxes through the acquisition.
“KA Steel has expansive, scalable infrastructure with compelling growth opportunities. Its business, which is concentrated in the Upper Midwest, provides an excellent complement to the geographic profile of Olin’s Chlor Alkali business,” said Joseph D. Rupp, Olin’s president and CEO.
The purchase is still pending regulatory approval.