MOSCOW (MRC) -- Eastman Chemical Company, a global specialty chemical company, has announced that it has entered into a definitive agreement with Taminco Corporation under which Eastman will acquire Taminco, a global specialty chemical company, reported Eastman on its site.
Under the terms of the agreement, Taminco stockholders will receive USD26.00 in cash for each share of Taminco common stock. The total transaction value is USD2.8 billion, including net assumed debt of USD1 billion. The acquisition will be funded with available cash and debt financing.
"The acquisition of Taminco demonstrates Eastman’s continued commitment to accelerating growth throughout the company and around the globe," said Mark Costa, chairman and chief executive officer of Eastman. "As a specialty chemical company with consistent earnings growth and leading positions in attractive niche end markets, Taminco is a strong fit with Eastman’s strategic focus. Taminco will add an attractive alkylamines stream to our chemical portfolio."
The acquisition of Taminco strengthens Eastman’s presence in attractive niche markets such as food, feed and agriculture. In addition, it provides opportunities to accelerate growth in the personal care, coatings, and oil and gas markets. These markets also benefit from global megatrends such as a growing population, demand for high-performance products, and energy efficiency. The acquisition of Taminco will add an attractive, world-class technology platform in alkylamines to Eastman’s portfolio.
Eastman stockholders will benefit from corporate and operating cost synergies and revenue synergies. Total synergies are estimated to be approximately 5% of Taminco’s 2013 sales revenues with the majority expected to be realized over the two years post-acquisition.
Eastman expects free cash flow (defined as cash from operations less capital expenditures and dividends) in the two years following the acquisition to be approximately USD1.5 billion and unlevered return on capital to be between 12-15%, consistent with previous target returns.
As MRC wrote previously, earlier this year, Eastman Chemical Company enhanced its medical packaging portfolio with Eastalite copolyester, the company’s first opaque offering, which is styrene-free and can be a sustainable alternative to high-impact polystyrene (HIPS).
Eastman (headquartered in Kingsport, Tennessee, USA) 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.
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