Eastman to sell adhesives and resins business for $1 billion

Eastman Chemical said on the 28th that the company has reached a definitive agreement to sell its adhesives, resin assets and businesses to British chemical company Synthomer for $1 billion
.

The sale includes product lines of hydrocarbon resins, virgin monomer resins, polyolefin polymers, rosins and dispersions, and oleochemical and fatty acid-based resins
.

The final purchase price is subject to working capital and other adjustments at closing
.
Currently, the total selling price is 11 times the adjusted EBITDA (earnings before interest, tax, depreciation and amortization) of the adhesive resin business for 12 consecutive months
.

Eastman expects the sale to have an impact on adjusted earnings per share in 2022
.

"This sale is part of our efforts to improve the performance of our Additives and Performance Products segment as we divest our tire additives business," said CEO Mark Costa
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"We will continue to focus on leveraging our innovation-driven strategy to grow our special business within AFP and deliver strong earnings growth
," he added
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The sale is subject to regulatory approvals and other customary closing conditions, including employee representative consultations in applicable jurisdictions
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Assets in the Adhesives business will be reported as held for sale beginning in the fourth quarter of 2021 until the sale
.

The sale is expected to close in the first quarter of 2022
.