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
PepsiCo, Inc. (PEP) has reached an agreement with private equity firm PAI Partners to sell Tropicana, Naked and other select juice brands across North America. The agreement also includes an irrevocable option to sell certain juice businesses in Europe. The combined pre-tax cash proceeds will be approximately... Drug major Eli Lilly And Co. reported Tuesday weak profit in its second quarter, despite higher revenues driven by strong volume across core business and most major geographies. Further, the company trimmed its forecast for fiscal 2021 earnings on a reported basis and margin, while maintained adjusted earnings view above market estimates. The company also tightened full-year revenue forecast. Shares of BMW Group were losing around 5 percent in German trading after the luxury automaker warned Tuesday that its second half-year is likely to be more volatile, affected by supply bottlenecks, high prices for raw materials and a shortage of semiconductors. This was despite reporting strong second-quarter results driven by solid demand.
Follow RTT