KINGSPORT, Tenn. (WJHL) – Eastman Chemical Company has entered a deal to sell its rubber additive and other related tire product lines in an agreement representing $800 million.
According to a release from Eastman, the agreement with “an affiliate of One Rock Capital Partners, LLC will result in the sale of Eastman’s assets and technology in its global tire additives business.
“The sale does not include the Eastman Impera™ and other performance resins product lines of the tire additives business,” the release states.
$725 million in cash will be paid at the closing of the deal, while the remainder will be “paid based on performance of the rubber additives business post-closing through 2023.” The release states the final purchase price is still subject to other possible adjustments.
The sale is expected to be completed sometime in the second half of 2021.
“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,” said Mark Costa, Board Chair and Chief Executive Officer. “We are pleased 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.”
You can read the full release on the sale below: