OLN/HUN MOE - Melt, Split Open and Melt; Value Creation in an Extended Trough Appears Challenging

研报英文原文证据摘录

OLN/HUN MOE - Melt, Split Open and Melt; Value Creation in an Extended Trough Appears Challenging

OLN/HUN MOE - Melt, Split Open and Melt; Value Creation in an Extended Trough Appears Challenging Equity Research

value applications. OlinHuntsman would be one of the lowest-cost producers serving key growing

markets such as aerospace.

• The OlinHuntsman merger would enable HUN to access chlorine inputs at producer economics,

improving its US cost position in MDI, amines, and epoxy. This would improve its resilience through

the cycle (thanks to improved feedstock security) while accelerating downstream growth.

• For OLN, this combination would expand its outlets for chlorine and liberate additional caustic soda

volumes, enhancing OLN's cross-cycle operating rates. It would also offer OLN greater flexibility in

market entry points across the epoxy chain.

• Winchester would continue to operate as a key business.

End Markets: Following the merger, Olin Huntsman would sell into diverse and high-value end markets

including aerospace, automotive, consumer, construction & infrastructure, defense, electronics, energy,

industrial, pulp & paper, and water treatment.

Geographic Mix ($12.5B in Combined Sales in 2025): OlinHuntsman would have combined annual

revenue of ~$12.5B (based on 2025 numbers) and EBITDA of $0.9B (or $1.3B including synergies).

Geographically, the business would have a strong position in North America, specifically the USGC (US

& Canada 56% of combined sales), as well as a presence in Europe (17%) & Asia (APAC 18%, ROW 9%).

Balance Sheet & Cash Flows: Year-end 2025 net leverage of the combined OlinHuntsman was 4.6x in

2025 (or 3.2x including full synergies), with combined liquidity of $2.3B. The two have a blended cost