Olin's Acquisition Of SunBelt Proving Accretive, Oppenheimer Maintains Outperform

Oppenheimer has published a research report on Olin Corporation OLN after the company's acquisition of SunBelt, which is already proving to be accretive. In the report, Oppenheimer writes "OLN acquired the 50% of its highly profitable SunBelt Chlor Alkali Partnership that it did not already own from PolyOne for $174.95M ($132.3M cash plus proportionate debt). At 5.0x trailing EBITDA on trough chlor-alkali numbers, this appears to be another smart accretive deal, buttressing management's reputation as prudent stewards of shareowner capital. OLN expects the deal to be immediately accretive; on conservative calculations, we raise '11E EPS by 11% to $1.70 and '12E by 17% to $2.77." Oppenheimer maintains its Outperform rating and $28 price target. Olin Corporation closed yesterday at $18.61.