Eastman acquire Solutia $4.7 billion

Eastman to acquire Solutia for $4.7 billion

4:55 AM, 2nd July 2012
Eastman to acquire Solutia for $4.7 billion
Jim Rogers, Chairman and CEO, Eastman.

KINGSPORT/ST LOUIS, US: Eastman Chemical Company and Solutia Inc have entered into a definitive agreement, under which Eastman will acquire Solutia. Solutia stockholders will receive $22 in cash and 0.12 shares of Eastman common stock for each share of Solutia common stock. Based on closing prices, Solutia shareholders will receive cash and stock valued at $27.65 per Solutia common share, representing a premium of 42 per cent and a total transaction value of $4.7 billion, including the assumption of Solutia’s debt.

“The acquisition of Solutia is a significant step in our growth strategy and one that I am confident will strengthen Eastman as a top-tier specialty chemical company with strong, stable margins. The addition of Solutia will broaden our geographic reach into emerging geographies, particularly Asia Pacific, establish a powerful combined platform with extensive organic growth opportunities, and expand our portfolio of sustainable products, all of which are consistent with our growth strategy,” said Jim Rogers, Chairman and CEO, Eastman.

“This transaction is also expected to deliver immediate value to our stockholders in the form of accretion and strong cash generation, as well as create potential upside through the combination of two leading global chemical companies,” added Rogers.

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