Eastman Completes Acquisition of Sterling Chemicals, Inc.
KINGSPORT, Tenn., Aug. 9, 2011 â€" Eastman Chemical
Company (NYSE:EMN) today announced that it has completed the
acquisition of Sterling Chemicals, Inc., a single site North
American petrochemical producer, for $100 million in cash.
Excluding costs and charges related to the acquisition, the
acquired business is expected to be slightly accretive to 2011
earnings per share and accretive to 2012 earnings per share above
the companyâ€™s cost of capital.
This acquisition includes Sterlingâ€™s plasticizer and acetic acid manufacturing assets in Texas City, Texas.Â Eastman plans to modify and restart the currently idled plasticizer manufacturing facility to produce non-phthalate plasticizers, including Eastman 168â„¢ non-phthalate plasticizers. This additional capacity will enable the companyâ€™s Performance Chemicals and Intermediates segment to serve the growing market demand for non-phthalate alternatives.
Forward-Looking Statements: Â This news release includes forward-looking statements concerning the acquisition of Sterling Chemicals, Inc., including modification and restart of Sterlingâ€™s currently idled plasticizer manufacturing facility to produce Eastman 168â„¢ non-phthalate plasticizers, Eastmanâ€™s expected competitive position in the market for non-phthalate plasticizer products after the acquisition, expected earnings from the acquired business and product lines, and projected market demand and volume increases for non-phthalate plasticizer products. Such expectations are based upon certain preliminary information, internal estimates, and management assumptions, expectations, and plans, and are subject to a number of risks and uncertainties inherent in projecting future conditions, events, and results. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions or expectations prove to be inaccurate or are unrealized. Important factors that could cause actual results to differ materially from such expectations are and will be detailed in the company's filings with the Securities and Exchange Commission, including the Form 10-Q filed for second quarter 2011 available on the Eastman web site at www.eastman.com in the Investors, SEC filings section.