(eastman) --
Eastman Chemical Company (has announced completion of its acquisition of Solutia
Inc. The approximately USD4.8 bln 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.
The closing follows
the receipt of all necessary regulatory and other approvals, including approval
of the transaction by Solutia stockholders on June 29, 2012. Pursuant to the
terms of the merger agreement, Solutia stockholders are entitled to receive
USD22.00 in cash and 0.12 shares of Eastman common stock for each share of
Solutia common stock.
Eastman issued 14,686,067 shares of its common
stock in the acquisition and, as a result of the assumption of outstanding
warrants to purchase shares of Solutia’s common stock, has outstanding 4,481,250
warrants which are potentially exercisable for up to an aggregate of 537,750
shares of Eastman common stock and cash.
With the closing of the
transaction, Solutia’s common stock and warrants will cease trading on the New
York Stock Exchange as of the close of the market on July 2, 2012 and will no
longer be listed on the NYSE. |
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