Eastman completes PET divestiture to DAK Americas

01 February 2011 14:05  [Source: ICIS news]

TORONTO (ICIS)--Eastman has completed the divestment of its US polyethylene terephthalate (PET) business to DAK Americas, the US chemicals firms said on Tuesday.

Eastman chief financial officer Curt Espeland said the deal closed on Monday, resulting in cash proceeds of about $600m (€438m), before transaction costs.

Eastman could use the proceeds for share buy-backs or smaller acquisitions, either in the US or in emerging markets, he told analysts during Eastman’s 2010 fourth-quarter results conference call.

CEO Jim Rogers added: "There's more [acquistion] opportunities below $500m than over $500m."

"We want to be really prudent ... looking for the right acquistion," he said.

The acquisition by DAK followed its purchase in 2007 of Eastman’s PET operations in Cosoleacaque, Mexico, and Zarate in Argentina.

DAK, based in Charlotte, North Carolina, is wholly-owned by Mexico’s Alfa.

($1 = €0.73)

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By: Stefan Baumgarten
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