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Eastman completes acquisition of Solutia

July 12/2012
(eastman) -- Eastman Chemical Company (has announced completion of its acquisition of Solutia Inc. The approximately USD4.8 bln acquisition supports Eastmanís growth strategy to increase revenues and profit margins by expanding the companyís 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 Solutiaís 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, Solutiaís 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.
Author:Anna Larionova
Tags:Eastman Chemical, Solutia Inc..
Category:General News
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