Eastman Chemical To Sell Rubber Additives Business To One Rock Capital For $800 Mln - Quick Facts

(RTTNews) - Eastman Chemical Co. (EMN) announced Wednesday it has entered into a definitive agreement with an affiliate of One Rock Capital Partners, LLC to sell the rubber additives and other product lines and related assets and technology of the global tire additives business of its Additives & Functional Products segment.

The sale includes Crystex insoluble sulfur and Santoflex antidegradants, but does not include the Eastman Impera and other performance resins product lines of the tire additives business.

The total sale price of $800 million consists of $725 million cash at closing and an additional amount of up to $75 million to be paid based on performance of the rubber additives business post-closing through 2023.

The company expects the sale will be either neutral or accretive to adjusted earnings per share in 2022.

Eastman Chemical said the sale is part of its ongoing effort to improve the performance of its Additives & Functional Products segment and it is most beneficial to Eastman and the rubber additives business.

The sale, subject to regulatory approvals and satisfaction of other customary closing conditions, is expected to be completed in the second half of 2021.