Solutia acquisition costs Eastman $4.8 billion

qiangzi

Thursday, July 19, 2012

# M( w; Z: r4 t8 {7 m( EKingsport, TN - Eastman Chemical announced the completion of its acquisition of Solutia. The approximately $4.8 billion acquisition supports Eastman’s growth strategy to increase revenues and profit margins by expanding the company’s 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. With the acquisition of Solutia, Eastman has made structural and reporting changes resulting in five reporting segments: Additives and Functional Products, Adhesives and Plasticizers, Advanced Materials, Fibers, and Specialty Fluids and Intermediates. This structure takes into consideration the strategies, operating models, and sales channels that the various businesses employ to be leaders in their respective markets. Additives and Functional Products consists of the rubber materials product lines from Solutia’s former Technical Specialties segment and the specialty polymers and solvents product lines of Eastman’s former Coatings, Adhesives, Specialty Polymers and Inks segment. Adhesives and Plasticizers consists of the plasticizer product lines of Eastman’s former Performance Chemicals and Intermediates (PCI) segment and the adhesives product lines formerly in its CASPI segment. Advanced Materials consists of Eastman’s former Specialty Plastics segment and Solutia’s former Performance Films and Advanced Interlayers segments. Fibers, which continues to consist of the acetate tow, acetate yarn, and acetyl product lines. Specialty Fluids and Intermediates consists of the specialty fluids product lines from Solutia’s former Technical Specialties segment and Eastman’s oxo and acetyl intermediates product lines of its former PCI segment.