Eastman concludes Solutia buy
US-based chemical firm Eastman Chemical has paid almost US$4.8 billion for chemicals solutions provider Solutia, having concluded its purchase of the firm. It says the acquisition is in line with its growth strategy to increase revenues and profit margins by expanding its geographic reach, especially in emerging markets, and establishing a more diverse and sustainable product portfolio.
Eastman expects the acquisition to be immediately accretive to earnings, excluding acquisition-related costs and charges. The company has made structural changes in five segments Ė Additives and Functional products, Adhesives and Plasticisers, Advanced Materials, Fibres, and Specialty Fluids and Intermediates.
Additives and Functional Products consists of the rubber materials product lines from Solutiaís former Technical Specialties segment and the speciality polymers and solvents product lines of Eastmanís former Coatings, Adhesives, Specialty Polymers and Inks segment.
Adhesives and Plasticisers consists of the plasticiser product lines of Eastmanís former Performance Chemicals and Intermediates (PCI) segment and the adhesives product lines formerly in its CASPI segment.
Advanced Materials consists of Eastmanís former Specialty Plastics segment and Solutiaís former Performance Films and Advanced Interlayers segments. Fibres continue to consist of the acetate tow, acetate yarn and acetyl product lines. Speciality Fluids and Intermediates consists of the speciality fluids product lines from Solutiaís former Technical Specialties segment and Eastmanís oxo and acetyl intermediates product lines of its former PCI segment.