(eastman) -- Eastman Chemical
Company and Solutia Inc. announced that they have entered into a
definitive agreement, under which Eastman will acquire Solutia, a global leader
in performance materials and specialty chemicals. Under the terms of the
agreement, Solutia stockholders will receive USD22.00 in cash and 0.12 shares of
Eastman common stock for each share of Solutia common stock.
yesterday’s closing prices, Solutia shareholders will receive cash and stock
valued at USD27.65 per Solutia common share, representing a premium of 42
percent and a total transaction value of approximately USD4.7 billion, including
the assumption of Solutia’s debt.
"The acquisition of Solutia is a significant step in our growth strategy and
one that I am confident will strengthen Eastman as a top-tier specialty chemical
company with strong, stable margins," said Jim Rogers, chairman and chief
executive officer of Eastman.
"This transaction is also expected to
deliver immediate value to our stockholders in the form of accretion and strong
cash generation, as well as create potential upside through the combination of
two leading global chemical companies," said Rogers.