Eastman Chemical Co. recently announced that it has entered into a definitive merger agreement to acquire Sterling Chemicals Inc., a single-site North American petrochemical producer, for $100 million in cash. The transaction, which includes Sterling’s plasticizer and acetic acid manufacturing assets in Texas City, Texas, is expected to be accretive to Eastman’s full-year 2012 earnings per share in excess of Eastman’s cost of capital.

Eastman plans to modify and restart Sterling’s currently idled plasticizer manufacturing facility to produce non-phthalate plasticizers, including Eastman 168™ non-phthalate plasticizers. This additional capacity will reportedly enable the company’s Performance Chemicals and Intermediates (PCI) segment to serve the growing market demand for non-phthalate alternatives. In the North American and European non-phthalate plasticizers markets, total sales volume is expected to increase at a compound annual rate of approximately 7% over the next five years.

“This acquisition supports our growth strategy for our plasticizer product line, and will enable us to keep pace with the growing demand for non-phthalate alternatives, like our Eastman 168™,” said Ron Lindsay, executive vice president for Performance Chemicals and Intermediates, and Fibers. “We look forward to working with Sterling employees as we bring this additional capacity online and continue to grow this business.”

The acquisition also includes Sterling’s acetic acid production facility and its supply to BP Amoco Chemical Co., under a long-term production agreement.

For more information, visit www.sterlingchemicals.com or www.eastman.com.