25 October 2010 14:58 [Source: ICIS news]
LONDON (ICIS)--Eastman Chemical has agreed to sell to DAK Americas its polyethylene terephthalate (PET) business and the related assets and technology of its Performance Polymers segment, the US-based chemicals major said on Monday.
The total cash proceeds of the transaction, which was forecast to close during the fourth quarter of 2010, were expected to be $600m (€426m). The final purchase price was subject to working capital adjustments at the time the deal closes, but Eastman said it expected to see a “modest gain” from the sale.
“After reviewing strategic options for our performance polymers PET business, we determined this action to be the most beneficial to Eastman and our stockholders,” said Jim Rogers, Eastman president and CEO.
“With the path forward for PET now clear, we are dedicating all of our energies to leveraging our solid core businesses and strong balance sheet to deliver value creating growth,” he added.
Eastman said the sale, which was still subject to regulatory approvals, was not expected to affect product lines in the group’s specialty plastics segment.
In conjunction with the acquisition, the group added that it had approved a restructuring plan to reduce costs and expected restructuring charges in the fourth quarter.
In March, Eastman filed a lawsuit against Dak, alleging Dak had used Eastman’s patented IntegRex technology for the production of PET without authorisation.
($1 = €0.71)
To discuss issues facing the chemical industry visit ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|