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)
“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
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.
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, visitwww.eastman.com.