Eastman Completes Sale of Texas City Operations

Rhea-AI Summary

Eastman Chemical Company (NYSE:EMN) completed the sale of its Texas City Operations to INEOS Acetyls for a total sale price of $490 million, with approximately $415 million cash at closing. Eastman will retain ownership of its plasticizer business at the site and continue to manufacture acetyls at its Tennessee Operations in Kingsport.

KINGSPORT, Tenn.--(BUSINESS WIRE)-- Eastman Chemical Company (NYSE:EMN) announced that it has completed the previously reported sale of its Texas City Operations to INEOS Acetyls. Texas City Operations was previously part of Eastman’s Chemical Intermediates segment. Eastman has retained ownership of its plasticizer business at the site, which INEOS now operates for Eastman as part of this agreement. Eastman will also continue to manufacture acetyls at its Tennessee Operations in Kingsport.

The total sale price of $490 million consists of approximately $415 million cash at closing and the remainder in equal installments on the first and second anniversaries of the closing. The final purchase price is subject to working capital and other customary post-closing adjustments. Proceeds from the divestiture in the near term are expected to be used for debt repayment.

About Eastman

Founded in 1920, Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company’s innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,500 people around the world and serves customers in more than 100 countries. The company had 2022 revenue of approximately $10.6 billion and is headquartered in Kingsport, Tennessee, USA. For more information, visit www.eastman.com.

About INEOS Acetyls

INEOS Acetyls is a global producer of acetic acid and a range of derivatives. It is the largest producer of acetic acid, acetic anhydride, and ethyl acetate in Europe. In the U.S., the INEOS Acetyls business has been a leading supplier of acetic acid and acetic anhydride to North and South America for more than 45 years. Across Asia, the business provides acetic acid and commercial services across the region. It is one of the largest acetic acid suppliers in Asia, with a strong reputation in the industry for following world-class standards of production.

About INEOS

INEOS is a global petrochemicals manufacturer, comprising 36 individual businesses. The company operates 194 facilities in 29 countries throughout the world, employing 26,000 people. INEOS makes the raw materials and energy used for everyday life. Its products make an indispensable contribution to society and are essential in applications ranging from the preservation of food to the provision of clean water; from construction of wind turbines, solar panels, and other renewable technologies to the construction of lighter and more fuel-efficient vehicles and aircraft; from medical devices and pharmaceuticals to clothing and apparel. In recent years, INEOS has diversified with the launch of INEOS Automotive and INEOS Hygienics, the acquisition of iconic British brand Belstaff, and an ever-expanding sports portfolio. As part of its greenhouse gas emission reduction strategy, INEOS businesses have put in place plans and actions needed to ensure that they lead the transition to a net zero economy by no later than 2050, whilst remaining profitable.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231201259854/en/

Media: Tracy Kilgore Addington

423-224-0498 / tracy@eastman.com



Investors: Greg Riddle

212-835-1620 / griddle@eastman.com

Source: Eastman Chemical Company

FAQ

What did Eastman Chemical Company announce?

Eastman Chemical Company announced the completion of the sale of its Texas City Operations to INEOS Acetyls.

What is the ticker symbol for Eastman Chemical Company?

The ticker symbol for Eastman Chemical Company is EMN.

What was the total sale price of the Texas City Operations?

The total sale price was $490 million, with approximately $415 million cash at closing.

What will Eastman retain ownership of?

Eastman will retain ownership of its plasticizer business at the site and continue to manufacture acetyls at its Tennessee Operations in Kingsport.

How will the proceeds from the divestiture be used?

The proceeds are expected to be used for debt repayment in the near term.