Eastman completes $4.8bn acquisition of Solutia
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 said.
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.
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