Eastman Completes Acquisition of Sterling Chemicals, Inc.
KINGSPORT, Tenn., – Eastman Chemical Company (NYSE:EMN) today announced that it has completed the acquisition of Sterling Chemicals, Inc., a single site North American petrochemical producer, for $100 million in cash. Excluding costs and charges related to the acquisition, the acquired business is expected to be slightly accretive to 2011 earnings per share and accretive to 2012 earnings per share above the company’s cost of capital.
This acquisition includes Sterling’s plasticizer and acetic acid manufacturing assets in Texas City, Texas. Eastman plans to modify and restart the currently idled plasticizer manufacturing facility to produce non-phthalate plasticizers, including Eastman 168™ non-phthalate plasticizers. This additional capacity will enable the company’s Performance Chemicals and Intermediates segment to serve the growing market demand for non-phthalate alternatives.
Forward-Looking Statements: This news release includes forward-looking statements concerning the acquisition of Sterling Chemicals, Inc., including modification and restart of Sterling’s currently idled plasticizer manufacturing facility to produce Eastman 168™ non-phthalate plasticizers, Eastman’s expected competitive position in the market for non-phthalate plasticizer products after the acquisition, expected earnings from the acquired business and product lines, and projected market demand and volume increases for non-phthalate plasticizer products. Such expectations are based upon certain preliminary information, internal estimates, and management assumptions, expectations, and plans, and are subject to a number of risks and uncertainties inherent in projecting future conditions, events, and results. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions or expectations prove to be inaccurate or are unrealized. Important factors that could cause actual results to differ materially from such expectations are and will be detailed in the company’s filings with the Securities and Exchange Commission, including the Form 10-Q filed for second quarter 2011 available on the Eastman web site at www.eastman.com in the Investors, SEC filings section.
Eastman’s chemicals, fibers and plastics are used as key ingredients in products that people use every day. Approximately 10,000 Eastman employees around the world blend technical expertise and innovation to deliver practical solutions. The company is committed to finding sustainable business opportunities within the diverse markets and geographies it serves. A global company headquartered in Kingsport, Tenn., USA, Eastman had 2010 sales of $5.8 billion. For more information, visit www.eastman.com.
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