London +4420 814 42225
Moscow +7495 543 9194
Kiev +38044 599 2950
info@mrcplast.com

Our Clients

Order Informer

 
Home > News >
 

Eastman to sell tire additives business product lines to One Rock affiliate

June 25/2021

MOSCOW (MRC) -- Eastman Chemical Company announced it has entered into a definitive agreement with an affiliate of One Rock Capital Partners, LLC to sell the rubber additives (including Crystex insoluble sulfur and Santoflex antidegradants) and other product lines and related assets and technology of the global tire additives business of its Additives & Functional Products segment, according to BusinessWire.

The sale does not include the Eastman Impera and other performance resins product lines of the tire additives business.

The total sale price of USD800 million consists of USD725 million cash at closing and an additional amount of up to USD75 million to be paid based on performance of the rubber additives business post-closing through 2023. The final purchase price is subject to working capital and other adjustments at closing. The company expects the sale will be either neutral or accretive to adjusted earnings per share in 2022.

This announcement is part of our ongoing effort to improve the performance of our Additives & Functional Products segment. After reviewing strategic options, we believe this action is the most beneficial to Eastman and the rubber additives business, said Mark Costa, Board Chair and Chief Executive Officer. We are pleased to reach this agreement with One Rock and to have a clear path forward for the rubber additives business. We continue to evaluate other actions to improve our AFP segment.

The sale, subject to regulatory approvals and satisfaction of other customary closing conditions, is expected to be completed in the second half of 2021. The agreement contains customary representations, warranties, and covenants of both parties including, among other things, for Eastman to conduct the rubber additives business in the ordinary course consistent with past practice.

As MRC reported before, in 2016, Eastman Chemical's chief executive Mark Costa announced that the company wanted to reduce its surplus ethylene and commodity intermediates, but did not intend to sell its cracker in Longview, Texas.

Ethylene is the main feedstock for the production of polyethylene (PE).

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased.

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 more than 100 countries. The company is headquartered in Kingsport, Tennessee, USA and employs approximately 14,500 people around the world.


mrcplast.com
Author:Margaret Volkova
Tags:ethylene, car components, petrochemistry, adhesives, natural rubber, tyres, Eastman Chemical, USA.
Category:General News
|
| More

Leave a comment

MRC help

 


 All News   News subscribe