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| Acquisition will enable company to expand fluids product offerings to the aviation market |
Kingsport, Tenn., USA, Jan 29, 2014 - (ACN Newswire) - Eastman Chemical Company (NYSE:EMN) today announced that it has entered into a definitive agreement to acquire the assets of BP's global aviation turbine engine oil business, with annual revenues of approximately $100 million. The acquisition includes a production facility in Linden, NJ, specialized laboratory equipment located in Naperville, IL, and a long-term supply agreement for products related to the acquired business that BP will use to serve industrial markets.
When added to its Skydrol(R) aviation hydraulic fluids, the acquired fluids product portfolio is expected to enable Eastman to better meet the global aviation industry's needs. Subject to receipt of required regulatory approvals and satisfaction of other customary closing conditions, the acquisition is expected to be completed in the second quarter of 2014. Terms of the transaction were not disclosed.
"With the acquisition of BP's global aviation turbine oil business, Eastman will gain a growing and profitable specialty chemical business that aligns well with our existing product offerings," said Ron Lindsay, chief operating officer. "This acquisition is consistent with our objective of consistent superior value through disciplined capital allocation including bolt-on acquisitions."
The acquisition is expected to be accretive to Eastman's full-year 2014 earnings excluding acquisition-related costs and charges. Following the completion of the transaction, the aviation turbine oil business will become part of Eastman's Specialty Fluids & Intermediates segment.
Moelis & Company is acting as exclusive financial advisor and Jones Day is serving as legal counsel for Eastman on this transaction.
Eastman is a global specialty chemical company that produces a broad range of products found in items people use every day. With a portfolio of specialty businesses, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. Its market-driven approaches take advantage of world-class technology platforms and leading positions in attractive end-markets such as transportation, building and construction, and consumables. Eastman focuses on creating consistent, superior value for all stakeholders. As a globally diverse company, Eastman serves customers in approximately 100 countries and had 2012 pro forma combined revenues, giving effect to the Solutia acquisition, of approximately $9.1 billion. The company is headquartered in Kingsport, Tenn., USA, and employs approximately 14,000 people around the world. For more information about Eastman, visit www.eastman.com.
Forward-Looking Statements
This communication includes forward-looking statements, including concerning current expectations regarding the timing of completion of the proposed acquisition, the benefits of the acquisition, and projected financial and operating performance and results following completion of the acquisition. Such expectations are based upon certain preliminary information, internal estimates, and management assumptions, expectations, and plans, and are subject to a number of risks and uncertainties inherent in projecting future conditions, events, and results. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions or expectations prove to be inaccurate or are unrealized. Important factors that could cause actual results to differ materially from such expectations are and will be detailed in the company's filings with the Securities and Exchange Commission (the "SEC"), including the Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 that has been filed with the SEC and the Annual Report on Form 10-K for the year ended December 31, 2013 that will be filed with the SEC. Filings made by Eastman are available when filed with the SEC on the Eastman web site at www.eastman.com in the Investors, SEC Information section.
Contacts:
Media: Kristin Parker
+1-423-229-2526 / kristin@eastman.com
Investors:
Greg Riddle
+1-212-835-1620 / griddle@eastman.com
This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Eastman Chemical Company via Globenewswire
Topic: Merger & Acquisition
Source: Eastman Chemical Company
https://www.acnnewswire.com
From the Asia Corporate News Network
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