Adhesives & Sealants Headlines / Green Products/Applications

Eastman to Acquire Genovique Specialties

March 29, 2010
/ Print / Reprints /
ShareMore
/ Text Size+

Eastman Chemical Co. has announced that it has entered into a definitive agreement to acquire Genovique Specialties Corp., a leading global producer of specialty plasticizers, benzoic acid and sodium benzoate. The acquisition will establish Eastman as a global leader in non-phthalate plasticizers for both general purpose and specialty markets. Terms of the transaction were not disclosed.

The transaction is expected to be accretive to Eastman’s full-year 2010 earnings per share. Following the completion of the transaction, Genovique Specialties, including its manufacturing operations in Chestertown, MD, Kohtla-Järve, Estonia, and its joint venture in Wuhan, China, will become part of Eastman's Performance Chemicals and Intermediates (PCI) segment.

“Eastman continues to execute its strategy to grow the company through strategic uses of cash. This acquisition aligns with Eastman’s strategic goals of investing in differentiated, sustainably advantaged products and diversifying into emerging geographies,” said Jim Rogers, president and CEO. “We look forward to delivering on the benefits this transaction creates for our customers and stockholders alike.”

Regulatory changes and shifting consumer preferences are driving rising demand for non-phthalate solutions in the approximately $9 billion worldwide plasticizer market. This growing demand for non-phthalate alternatives is expected to increase volumes of non-phthalate plasticizers at a compounded annual rate of 7% over the next five years in North America and Europe. Demand is also increasing in emerging markets for products manufactured for export to developed countries, where regulations favor the use of non-phthalate plasticizers.

Eastman is currently a supplier in North America and Europe of general purpose non-phthalate plasticizers for flexible PVC applications.  With 2009 revenues of approximately $135 million, Genovique Specialties is a global producer of specialty non-phthalate plasticizers based on benzoic acid for water-based adhesives, a new product line for Eastman. Genovique’s production and distribution capabilities and customer relationships in Europe and Asia also enhance Eastman’s diversification in regions targeted for growth.

“Genovique Specialties is a strategic addition that will allow us to grow our attractive plasticizer product lines,” said Ron Lindsay, executive vice president, performance polymers and chemical intermediates. “With Genovique, we will be better able to meet our customers’ demands for non-phthalates while also expanding Eastman’s presence in a high-growth, high-margin segment of the plasticizer market.”

The acquisition is expected to be completed after receipt of required regulatory approvals and satisfaction of other customary closing conditions. It is expected to be funded with available cash. The Valence Group acted as exclusive financial advisor to Eastman on this transaction.

For more information, visit www.eastman.com.

Did you enjoy this article? Click here to subscribe to Adhesives & Sealants Industry Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

ASI April 2014 Photo Gallery

Our April 2014 issue is now available!

Podcasts

ExxonMobil Tackifier Expansion

Dwight Tozer, vice president of ExxonMobil’s Adhesion Industry business, discusses the company’s latest tackifier expansion project with Editor-in-Chief Susan Sutton.

More Podcasts

Adhesives & Sealants Industry Magazine

ASI December 2014 cover

2014 December

The annual Buyers' Guide is here! You won't want to miss this.

Table Of Contents Subscribe

Bonding Plastics

Are you involved in bonding plastics or other difficult-to-bond substrates?
View Results Poll Archive

THE ADHESIVES STORE

handbook-sealant-tech.gif
Handbook of Sealant Technology

The Handbook of Sealant Technology provides an in-depth examination of sealants, reviewing their historical developments and fundamentals, adhesion theories and properties, and today’s wide range of applications.

More Products

ASI 2014 Buyers GuideASI's Buyers' Guide

Annual purchasing resource for equipment used in the manufacture/formulation of adhesives, sealants, pressure sensitives, tapes and labels and for application of finished adhesives. 

STAY CONNECTED

facebook_40px twitter_40  youtube_40pxlinkedin_40 google+ icon ASI 30px

Clear Seas Research

With access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.