The New Giant

John M. Olin, boss of Olin Industries (Winchester rifles, Cellophane, chemicals), likes to hunt and fish. He has shot bear in Alaska, quail in Georgia, ducks in Louisiana, and he keeps a fishing lodge in the Bahamas. Thomas S. Nichols, fast-moving president of Mathieson Chemical Corp. (chemicals, petrochemicals, drugs), also likes the sporting life. Furthermore, the sportsmen's companies had much in common; one made products the other needed. On hunting and fishing trips together, Olin and Nichols wondered if the two companies could not profitably combine efforts.

Last June they set up, under joint ownership, the Matholin Corp. to produce Hydrazine, the "wonder" chemical used for rocket fuel, explosives, plastics, insecticides, etc. (TIME, July 20). The partnership worked so well that John Olin and Tommy Nichols decided to take another big step.

This week the directors of Olin Industries and Mathieson Chemical voted to merge into Olin Mathieson Chemical Corp. subject' to stockholders' approval. This would make it the fifth biggest U.S. chemical company.* The new giant has $500 million in assets. 36,000 employees, 43 plants in the U.S. and 16 in foreign countries, and is selling $500 million worth of products a year. (Olin Oil & Gas Co., a separate company controlled by the Olin family, is not involved in the merger.)

Since the stocks of both companies are selling for almost the same price, stockholders will trade share-for-share for stock in the new company. John Olin, 61, was elected board chairman and chief executive officer of Olin Mathieson, and Nichols, 45, was named president.

Said John Olin: "It's a natural combination. Mathieson makes ammonia; Olin uses ammonia. Mathieson makes caustic soda; Olin uses caustic soda. Mathieson built up from basic chemicals into consumer products; Olin went from consumer products down into the chemical field . . . The two companies dovetail."

Each company has had a phenomenal growth since the end of World War II. Olin branched out from shotgun shells, dynamite and rifles into batteries, Cellophane, fabricating metals, lumber, brass, creosoting, cigarette paper, polyethylene food bags and compressed-air coal-breaking equipment. When Nichols took it over in 1948 Mathieson was making caustic soda, liquid chlorine, nitrogen and soda ash. Nichols expanded into fertilizer, sulphuric acid, petrochemicals, insecticides and--by buying out E. R. Squibb & Sons--into drugs and Pharmaceuticals. Says John Olin confidently: "We will continue to grow."

* First four: Du Pont, Union Carbide & Carbon, Dow Chemical, Allied Chemical & Dye.

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