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EASTMAN TO SELL PORTIONS OF CASPI SEGMENT
June 14, 2004
Apollo Management, L.P., a private investment firm, and Eastman Chemical Company have announced the signing of an agreement for Apollo to acquire certain businesses and product lines in Eastman's coatings, adhesives, specialty polymers and inks (CASPI) segment. The acquisition, with a purchase price of $215 million, is subject to regulatory approval and other customary closing conditions. The purchase price includes cash of $165 million at closing, plus a $50 million note payable to Eastman. The companies anticipate a closing by the end of July. "We're pleased to announce this agreement with Apollo," said Ferguson, Eastman's chairman and CEO. "We will be working closely with our customers to ensure a smooth transition as we move toward the closing of this transaction. I especially want to recognize the outstanding manner in which our employees in these businesses have continued to focus on meeting our customers' needs during the last several months...Completing this divestiture is a significant step forward in Eastman's ongoing strategy to improve the company's profitability."