The American chemicals manufacturer, Eastman Chemical Co. has entered worth USD 800 million definitive agreement with the US chemicals co., One Rock Capital Partners. Under the agreement, Eastman will be selling its rubber additives and other product lines and related assets of its global tyre additives business under its Additives & Functional Products segment (AFP) to One Rock.
The sold rubber additives sector would include the Crystex Insoluble Sulphur and Santoflex antidegradants production lines. However, it would not include the Impera and other performance resin lines under its tyre additives business. The deal is expected to close in H2 2021 and is a strategic move in Eastman’s continuous efforts to improve the performance of its AFP segment.
In FY20, Eastman reported decrease in its forecasted revenue and EBIT for the tire additives due to pandemic induced slowdown in automotive markets and increased competitive pricing pressure. Since then, the company had been strategically evaluating certain businesses and product lines within its AFP segment to improvise its segmental performance.
“We are pleased to reach this agreement with One Rock and to have a clear path forward for the rubber additives business. We continue to evaluate other actions to improve our AFP segment,” stated Mark Costa, Board Chair and Chief Executive Officer of Eastman.
Tony W. Lee, Managing Partner of One Rock, stated, “Eastman’s tire additives business is the global leader, known for high-performance, mission-critical products and technical leadership. We are excited to partner with the business’ highly experienced management team to further strengthen its unparalleled product portfolio and drive its growth as an independent company.”
The AFP segment of the company is engaged in the manufacturing of products used in the transportation, consumables, building and construction, animal nutrition, crop protection, energy, personal and home care, and other markets. Key technology platforms in this segment are cellulose esters, polyester polymers, insoluble sulphur, hydrocarbon resins, alkylamine derivatives, and propylene derivatives.