American specialty materials firm Eastman Chemical Co. revealed plans Thursday to part ways with its adhesives resins assets and business to aqueous polymers supplier Synthomer plc for a cash consideration of $1 billion.
The business, part of Eastman’s Additives & Functional Products segment, has a portfolio that includes hydrocarbon resins, pure monomer resins, polyolefin polymers, rosins and dispersions, and oleochemical and fatty-acid based resins product lines.
“Along with the divestiture of the tire additives business, this sale is part of our effort to improve the performance of the Additives & Functional Products segment,” Mark Costa, chief executive officer and board chair for the company, said in a release. “We are pleased to reach this agreement and that our adhesives resins business now has a clear path forward.”
Eastman anticipates the deal will close in the first quarter of 2022. The transaction is subject to regulatory approvals and other customary closing conditions, as well as price adjustments.
“Alongside the diversification of our portfolio, end markets, and geographies, our acquisition strategy looks to add new and highly complementary growth opportunities to Synthomer’s global portfolio,” said Synthomer CEO Calum MacLean in a statement. “Acquiring Adhesive Resins delivers on that ambition, giving us a leading position in the growing global adhesives market and extending our portfolio of differentiated products and sustainable solutions.”
This summer, the company announced plans to sell its Tire Additives business product lines to Rock Capital Partners for $800 million. The transaction includes the Crystex insoluble sulfur and Santoflex antidegradants lines, as well as other assets and technology related to the business. At the time Eastman said it intended to retain the performance resins product lines of its tire additives business.