New York, March 27, 2015 -- Moody's Investors Service has today said that Olin Corporation's (Olin, Ba1 stable) planned acquisition of Dow's chlor-alkali business will improve scale and earnings diversity. The rating agency stated that there is no immediate ratings impact for Olin. On Friday, Olin said it had entered into a definitive agreement with Dow Chemical Company (Dow, Baa2 stable) to acquire Dow's chlorine products, or chlor-alkali, division for a total consideration of approximately $5.4 billion. Olin stated that the acquisition will initially be financed with a combination of debt, equity, and cash. The transaction, subject to shareholder and regulatory approval, is expected to close by the end of December 2015. For Olin, the transaction will be transformative. Olin's fiscal year-end revenues in December 2014 totaled about $2.2 billion, and its EBITDA about $340 million. Pro forma for the acquisition, these figures will nearly triple, the new company is expected to have about $7.0 billion in revenues, with EBITDA around $1.0 billion.

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