Eastman to Buy Sterling Chemicals
Zacks Equity Research reports that Eastman Chemical Company will acquire Sterling Chemicals Inc. for $100 million in cash in order to boost its plasticizer product line. The deal is expected to close in the third quarter of 2011. The transaction, which includes Sterling''s plasticizer and acetic acid manufacturing assets in Texas City, Texas, is expected to be accretive to Eastman''s full-year 2012 earnings per share in excess of its cost of capital. Regulatory and shareholder approvals are awaited. Eastman plans to renovate and restart Sterling’s currently idled plasticizer manufacturing facility to produce non-phthalate plasticizers. This additional capacity will enable the company’s performance chemicals and intermediates segment to serve the growing market demand for non-phthalate alternatives.