Eastman Chemical has completed its previously-announced acquisition of
Solutia, the US-based chemicals company said on Monday.
The approximately $4.8 billion acquisition supports
Eastmans growth strategy to increase revenues and profit
margins by expanding the companys geographic reach,
especially in emerging markets, and by establishing a more
diverse and sustainable product portfolio, the company
Eastman expects the acquisition to be immediately accretive to
earnings, excluding acquisition-related costs and charges.
We are pleased to complete this transaction and
welcome Solutia to the global Eastman team, said Jim
Rogers, CEO of Eastman.
We are confident this acquisition strengthens our
position as a top-tier specialty chemicals company and
establishes a powerful combined platform with significant
opportunities for organic growth.
With the acquisition of Solutia, Eastman has made structural
changes resulting in five reporting segments: additives and
functional products, adhesives and plasticizers, advanced
materials, fibers, and specialty fluids and intermediates.
This structure takes into consideration the strategies,
operating models, and sales channels that the various
businesses employ, the company said.
Further details on each segment can be found in
Eastmans official news release.
Meanwhile, Solutias photovoltaics business will be
managed as a developing business initiative and reported as
other sales and operating earnings.
The company will report third quarter 2012 financial results
under the new reporting structure, it said.
With the closing of the transaction, Solutias common
stock and warrants will cease trading on the New York Stock
Exchange as of the close of the market on Monday. It will no
longer be listed on the NYSE.