Eastman to Acquire Aviation Turbine Oil Business from BP
Acquisition will enable company to expand fluids product offerings to the
KINGSPORT, Tenn., Jan. 28, 2014 - Eastman Chemical Company (NYSE:EMN) today
announced that it has entered into a definitive agreement to acquire the assets
of BP's global aviation turbine engine oil business, with annual revenues of
approximately $100 million. Â The acquisition includes a production facility in
Linden, NJ, specialized laboratory equipment located in Naperville, IL, and a
long-term supply agreement for products related to the acquired business that BP
will use to serve industrial markets.
When added to its SkydrolÂ® aviation hydraulic fluids, the acquired fluids
product portfolio is expected to enable Eastman to better meet the global
aviation industry's needs. Subject to receipt of required regulatory approvals
and satisfaction of other customary closing conditions, the acquisition is
expected to be completed in the second quarter of 2014. Terms of the transaction
were not disclosed.
"With the acquisition of BP's global aviation turbine oil business, Eastman will
gain a growing and profitable specialty chemical business that aligns well with
our existing product offerings," said Ron Lindsay, chief operating officer.
Â "This acquisition is consistent with our objective of consistent superior value
through disciplined capital allocation including bolt-on acquisitions."
The acquisition is expected to be accretive to Eastman's full-year 2014 earnings
excluding acquisition-related costs and charges. Â Following the completion of
the transaction, the aviation turbine oil business will become part of Eastman's
Specialty Fluids & Intermediates segment.
Moelis & Company is acting as exclusive financial advisor and Jones Day is
serving as legal counsel for Eastman on this transaction.
Â Eastman is a global specialty chemical company that produces a broad range of
products found in items people use every day. With a portfolio of specialty
businesses, Eastman works with customers to deliver innovative products and
solutions while maintaining a commitment to safety and sustainability. Its
market-driven approaches take advantage of world-class technology platforms and
leading positions in attractive end-markets such as transportation, building and
construction, and consumables. Eastman focuses on creating consistent, superior
value for all stakeholders. As a globally diverse company, Eastman serves
customers in approximately 100 countries and had 2012 pro forma combined
revenues, giving effect to the Solutia acquisition, of approximately $9.1
billion. The company is headquartered in Kingsport, Tenn., USA, and employs
approximately 14,000 people around the world.
For more information about Eastman, visit www.eastman.com.
Forward-Looking Statements: Â Â This communication includes forward-looking
statements, including concerning current expectations regarding the timing of
completion of the proposed acquisition, the benefits of the acquisition, and
projected financial and operating performance and results following completion
of the acquisition. 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 ( the "SEC"), including the
Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 that has
been filed with the SEC and the Annual Report on Form 10-K for the year ended
December 31, 2013 that will be filed with the SEC. Filings made by Eastman are
available when filed with the SEC on the Eastman web site at www.eastman.com in
the Investors, SEC Information section.
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Source: Eastman Chemical Company via GlobeNewswire