Specialty materials firm Eastman Chemical Co. entered into a deal to sell several product lines within its global tire additives business to an affiliate of private equity firm One Rock Capital Partners for $800 million, a recent company release announced. The transaction includes the Crystex insoluble sulfur and Santoflex antidegradants lines, as well as other assets and technology related to the business.
“This announcement is part of our ongoing effort to improve the performance of our Additives & Functional Products segment. After reviewing strategic options, we believe this action is the most beneficial to Eastman and the rubber additives business,” Mark Costa, board chair and chief executive officer of Eastman, said in a statement. “We are please 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.”
One Rock will pay $725 million in cash to acquire the lines and assets. Additionally, the private equity firm may pay up to $75 million based on the performance of the rubber additive business following the close of the transaction through 2023.
Eastman intends to retain ownership of the Eastman Impera and other performance resins product lines of its tire additives business.
The sale is subject to regulatory approvals and customary closing conditions. Eastman anticipates the deal will close in the second half of this year.
Powder & Bulk Solids reported in May that Eastman revealed plans to acquire 3F Feed & Food, a European firm that develops and commercializes additives for animal feed and human food. The company said the move will support its feed additives business.