Eastman Completes Acquisition of Sterling Chemicals, Inc.
Eastman Chemical Company 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 company’s cost of capital.
This acquisition includes Sterling’s plasticizer and acetic acid manufacturing assets in Texas City, Texas. Eastman plans to modify and restart the currently idled plasticizer manufacturing facility to produce non-phthalate plasticizers, including Eastman 168™ non-phthalate plasticizers. This additional capacity will enable the company’s Performance Chemicals and Intermediates segment to serve the growing market demand for non-phthalate alternatives.
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