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Eastman to Sell Adhesive Resins Business to Synthomer for $1 Billion
October 28, 2021

Eastman Chemical said it has entered into a definitive agreement to sell its adhesives resins assets and business to Synthomer plc for $1 billion in cash. The sale consists of the company's hydrocarbon resins (including Eastman Impera tire resins), pure monomer resins, polyolefin polymers, rosins and dispersions, and oleochemical and fatty-acid based resins product lines, all of which are part of Eastman's Additives & Functional Products segment.

The transaction, subject to regulatory approvals and other closing conditions, is expected to be completed in Q1 2022, with the final purchase price subject to working capital and other adjustments at closing.

The agreement also contains customary representations, warranties, and covenants of both parties including, among other things, to conduct the adhesives resins business in the ordinary course consistent with past practice. J.P. Morgan Securities LLC served as exclusive financial advisor, and Jones Day served as legal advisor to Eastman.

"Along with the divestiture of the tire additives business, this sale is part of our effort to improve the performance of the Additives & Functional Products segment," said Mark Costa, Eastman's Board Chair and CEO. " We will continue to focus on leveraging our innovation-driven strategy to grow our specialty businesses within AFP and deliver strong earnings growth."

Synthomer's CEO Calum MacLean said the acquisition is in line with the company's strategy to add complementary growth opportunities and gives it a leading global position in the growing adhesive market by extending its portfolio of products and sustainable solutions.

By Brian Balboa for The Plastics Exchange.

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