Eastman Chemical Company has agreed to acquire Taminco Corp., a producer of alkylamines & derivatives and formic acid & derivatives, the two companies announced on Thursday.

Mark Costa, Eastman's chairman and CEO, said that Taminco has shown consistent earnings growth and achieved leading positions in attractive niche end markets. The business is thought to be a strong fit with Eastman's strategic focus.

The total value of the transaction is $2.8 billion, including net assumed debt of $1 billion. Taminco stockholders will receive $26.00 per share in cash.

Eastman believes that the acquisition of Taminco will strengthen its presence in niche markets such as food, feed and agriculture while also providing opportunities to accelerate growth in the personal care, coatings and oil & gas markets.

The company said that it will gain a world-class technology platform in alkylamines and hopes to open up new opportunities to leverage the advantage created by shale gas.

Eastman expects the acquisition to be completed in the fourth quarter of 2014. It is predicted to be accretive to earnings per share by more than $0.35 in 2015 and over $0.60 in 2016.

The merger agreement includes a 30-day "go-shop" period, during which Taminco may solicit alternative acquisition proposals. The transaction also remains subject to approval by Taminco's shareholders, regulatory clearance and other customary closing conditions.