Eastman sells lines of tire additives |
KINGSPORT – Eastman Chemical Co. is look forsell its rubber additives and related product lines, assets and technologies for $ 800 million.
Eastman entered into the agreement with a subsidiary of One Rock Capital Partners, LLC. The agreement is expected to be finalized in the second half of 2021.
“This announcement is part of our continued efforts to improve the performance of our Additives and Functional Products segment,” said Mark Costa, Chairman and CEO of Eastman, in a press release. “After reviewing the strategic options, we believe this action is the most beneficial for Eastman and the rubber additives industry.
“We are delighted to enter into this agreement with One Rock and to have a clear path forward for the rubber additives business. “
According to a press release, the sale price of $ 800 million consists of $ 725 million in cash at closing and an additional amount of up to $ 75 million payable depending on the performance of the business. Rubber additives after closing until 2023. Final purchase price is subject to working capital and other adjustments at closing. The company expects the sale to be neutral or accretive to adjusted earnings per share in 2022.
Tony W. Lee, Managing Partner of One Rock, said the following in a press release:
“Eastman’s tire additives business is the global leader, known for its critical high performance products and technical leadership,” said Tony W. Lee, Managing Partner of One Rock, said what follows in a press release.
“We are delighted to partner with the company’s highly experienced management team to further strengthen its unparalleled product portfolio and drive its growth as an independent business. “
Rubber additives include Crystex insoluble sulfur and Santoflex anti-degradants, which, according to Eastman’s website, are used to control the rubber manufacturing process, while improving the durability, flexibility and appearance of tires and other products.