Eastman Chemical Company and Solutia Inc. have entered into a definitive agreement under which Eastman will acquire Solutia, a performance materials and specialty chemicals company that offers a range of products including heat-transfer fluids and aviation hydraulic fluids.
The transaction, which was approved by the boards of directors of both companies, remains subject to approval by Solutia’s shareholders and receipt of required regulatory approvals as well as other customary closing conditions. The transaction is expected to close in mid-2012.
“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 chief executive officer 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 complementary transaction will accelerate the growth of our businesses around the world," said Jeffry N. Quinn, chairman, president and chief executive officer 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."
Eastman and Solutia share several key fundamentals, such as complementary technologies and business capabilities, a polymer science backbone, similar operating philosophies and a high-performance culture. In addition, the overlap of key end-markets is expected to provide opportunities for growth.
With headquarters in St. Louis, Mo., Solutia operates globally with approximately 3,400 employees in more than 50 worldwide locations. For more information, visit www.solutia.com.