logo
  

Eastman Chemical To Sell Rubber Additives Business To One Rock Capital For $800 Mln - Quick Facts

Eastman Chemical Co. (EMN) announced Wednesday it has entered into a definitive agreement with an affiliate of One Rock Capital Partners, LLC to sell the rubber additives and other product lines and related assets and technology of the global tire additives business of its Additives & Functional Products segment.

The sale includes Crystex insoluble sulfur and Santoflex antidegradants, but does not include the Eastman Impera and other performance resins product lines of the tire additives business.

The total sale price of $800 million consists of $725 million cash at closing and an additional amount of up to $75 million to be paid based on performance of the rubber additives business post-closing through 2023.

The company expects the sale will be either neutral or accretive to adjusted earnings per share in 2022.

Eastman Chemical said the sale is part of its ongoing effort to improve the performance of its Additives & Functional Products segment and it is most beneficial to Eastman and the rubber additives business.

The sale, subject to regulatory approvals and satisfaction of other customary closing conditions, is expected to be completed in the second half of 2021.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
General Electric Co. reported Tuesday narrower net loss in its second quarter with strong growth in revenues. The company also generated strong order growth. Looking ahead, the company reiterated its outlook for adjusted earnings per share, while increased its 2021 outlook for Industrial free cash flow range. In pre-market activity on NYSE, GE shares were gaining around 4 percent. The U.S. Food and Drug Administration announced recall of Old Soul's Farms LLC's certain leafy green products as well as Excalibur Seasoning Co.'s Haen Meats Seasoning Blend, citing potential contamination with Listeria monocytogenes, an organism. Consumption of food contaminated with L. monocytogenes can cause listeriosis, a serious infection and sometimes fatal infections. Tobacco giant Philip Morris International plans to stop selling cigarettes in the United Kingdom in the next decade, according to its CEO Jacek Olczak. In an interview with the Daily Mail Sunday, Olczak said the sales of the company's most popular product Marlboro cigarettes will also be stopped. The move is said to be part of the company's plan to phase out traditional tobacco products.
RELATED NEWS
Follow RTT