Eastman acquire Sterling Chemicals
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Eastman to acquire Sterling Chemicals

4:40 PM, 23rd June 2011
Eastman to acquire Sterling Chemicals

 

KINGSPORT, US: Eastman Chemical Company will acquire Sterling Chemicals Inc, a single site North American petrochemical producer, for $ 100 million in cash, subject to modest deductions at closing. The transaction, which includes Sterling’s plasticizer and acetic acid manufacturing assets in Texas City, Texas, is expected to be accretive to Eastman’s full-year 2012 earnings per share in excess of Eastman’s cost of capital.

Eastman plans to modify and restart Sterling’s currently idled plasticizer manufacturing facility to produce 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. In the North American and European non-phthalate plasticizers markets, total sales volume is expected to increase by seven per cent annually over the next five years.

“This acquisition supports our growth strategy for our plasticizer product line and will enable us to keep pace with the growing demand for non-phthalate alternatives, like our Eastman 168,” said Ron Lindsay, Executive Vice President, Performance Chemicals and Intermediates, Fibre, Eastman.

The acquisition also includes Sterling’s acetic acid production facility and its supply to BP Amoco Chemical Company under a long-term production agreement.

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