INEOS Acetyls to Purchase Eastman’s Texas City Operations
Eastman Chemical Co. has entered into a definitive agreement to sell its Texas City Operations, located in Texas City, Texas, to INEOS Acetyls, a global manufacturer and supplier of acetic acid and related chemicals owned by the INEOS Group. Texas City Operations is currently part of Eastman’s Chemical Intermediates segment. Eastman will retain ownership of its plasticizer business at the site, which INEOS will operate for Eastman as part of this agreement. Eastman and INEOS have also entered into a Memorandum of Understanding to explore options for a long-term agreement for supplying vinyl acetate monomer (VAM) to Eastman.
The total sale price of $490 million consists of approximately $415 million cash at closing and the remainder in equal installments on the first and second anniversaries of the closing. The final purchase price is subject to working capital and other customary adjustments at closing. Proceeds from the divestiture in the near term are expected to be used for debt repayment. The company expects the sale to be accretive to adjusted earnings per share in 2024.