Apollo Management, L.P., a private investment firm, and Eastman Chemical Company announced June 1 they have signed an agreement for Apollo to acquire certain businesses and product lines in Eastman’s coatings, adhesives, specialty polymers and inks (CASPI) segment, including Eastman Resins, formerly Lawter International. The acquisition, with a purchase price of $215 million, is subject to regulatory approval and other customary closing conditions. The companies anticipate a closing by the end of July 2004.
“We’re pleased to announce this agreement with Apollo,” said Brian Ferguson, Eastman’s chairman and CEO. “We will be working closely with our customers to ensure a smooth transition as we move toward the closing of this transaction. I especially want to recognize the outstanding manner in which our employees in these businesses have continued to focus on meeting our customers’ needs during the last several months as we worked toward the announcement we’re making today.”
“We are excited about this opportunity to own a business that is an important manufacturer and marketer of products sold into the coatings, composites, inks and textile businesses,” said Josh Harris, founding partner at Apollo Management.
“These sectors should exhibit attractive growth in the future, and Apollo looks forward to working with the employees to allow this new company to realize its full potential.”
Eastman Resins manufacturing sites included in the agreement are Pleasant Prairie, WI; LaVergne, TE; Kallo, Belgium; and Tianjin, China; Nanping, China; and Funing, China.