Eastman Chemical has entered into a definitive agreement to
acquire the assets of BPs global aviation turbine
engine oil business, with annual revenues of approximately
$100 million, the companies announced on Tuesday.
The acquisition includes a production facility in Linden, New
Jersey, specialized laboratory equipment located in
Naperville, Illinois, and a long-term supply agreement for
products related to the acquired business that BP will use to
serve industrial markets.
When added to its Skydrol aviation hydraulic fluids,
the acquired fluids product portfolio is expected to enable
Eastman to better meet the global aviation industrys
needs, according to company officials.
Subject to receipt of required regulatory approvals and
satisfaction of other customary closing conditions, the
acquisition is expected to be completed in the second quarter
of 2014. Terms of the transaction were not disclosed.
With the acquisition of BPs global aviation
turbine oil business, Eastman will gain a growing and
profitable specialty chemical business that aligns well with
our existing product offerings, said Ron Lindsay, chief
operating officer of Eastman.
This acquisition is consistent with our objective of
consistent superior value through disciplined capital
allocation including bolt-on acquisitions," he added.
The acquisition is expected to be accretive to Eastmans
full-year 2014 earnings excluding acquisition-related costs
and charges. Following the completion of the transaction, the
aviation turbine oil business will become part of Eastman's
specialty fluids and intermediates business.