Eastman to Sell Adhesive Resins Business Product Lines

Eastman to Sell Adhesives Resins Business Product Lines Eastman Chemical Company and certain of its subsidiaries have signed a definitive agreement to sell their adhesives resins assets and business to Synthomer plc for aggregate cash consideration of USD 1 billion. The sale comprises product lines in hydrocarbon resins (including Eastman Impera tackifier resins), pure monomer resins, polyolefin polymers, resins and dispersions, and oleochemical and fatty acid-based resins. The business is currently part of Eastman's Additives and Functional Products segment. The total sale price represents 11 times the twelve-month adjusted EBITDA of the adhesives resins business. Final purchase price is subject to customary working capital and other adjustments at closing. The company expects the sale to be neutral to adjusted earnings per share in 2022. Mark Costa, Eastman's Chairman and Chief Executive Officer, stated, "Together with the divestiture of our rubber additives business, this sale is part of our effort to enhance the performance of our Additives and Functional Products segment. We are pleased to have reached this agreement and to have a clear path forward for our adhesives resins business. We will continue to focus on strengthening our innovation-driven strategy to grow our areas of expertise within AFP and deliver strong earnings growth. Synthomer Chief Executive Officer Calum MacLean said, "Our portfolio, acquisition strategy, alongside diversification of end markets and geographies, is aimed at adding new and highly complementary growth opportunities to Synthomer's global portfolio. The acquisition of Adhesives Resins fulfills this passion by positioning us as a leader in the growing global adhesives market and broadening our portfolio of differentiated products and sustainable solutions. This is a business we have long admired and I am confident that the combination of Synthomer and Adhesives Resins will create meaningful value for all stakeholders in the years ahead." The sale, which is subject to fulfillment of customary closing conditions, including regulatory approvals and consultation with certain employee representatives in relevant jurisdictions, is expected to close in the first quarter of 2022. The agreement includes customary representations, warranties and covenants of each party, including, among other things, the conduct of the adhesives resins business in the ordinary course consistent with past practice. Beginning from the fourth quarter of 2021 and through closing, the adhesives resins business assets will be reported as held for sale. Source