Eastman Chemical Co. and Solutia Inc. recently announced that they have entered into a definitive agreement under which Eastman will acquire Solutia.

“The acquisition of Solutia is a significant step in our growth strategy and one that I am confident will strengthen Eastman as a top-tier specialty chemical company with strong, stable margins,” said Jim Rogers, chairman and CEO of Eastman. “The addition of Solutia will broaden our geographic reach into emerging geographies, particularly Asia-Pacific, establish a powerful combined platform with extensive organic growth opportunities, and expand our portfolio of sustainable products, all of which are consistent with our growth strategy. This transaction is also expected to deliver immediate value to our stockholders in the form of accretion and strong cash generation, as well as create potential upside through the combination of two leading global chemical companies.

“This complementary transaction will accelerate the growth of our businesses around the world,” said Jeffry N. Quinn, chairman, president and CEO of Solutia. “The shared commitment to innovation, quality and technical service will allow us to better serve our customers and creates opportunity for our employees around the globe. This transaction provides Solutia’s shareholders with immediate value and an attractive premium, as well as the opportunity to benefit from the future prospects of a leading global chemicals producer with the financial strength, a diversified mix of premium products, and the geographic footprint to capitalize on long-term growth opportunities.”

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