Eastman Chemical buying Taminco for $1.73 billion
Deal is expected to close in the fourth quarter.
ALLENTOWN, Pa. — Eastman Chemical Co. is buying specialty chemical company Taminco for approximately $1.73 billion.
Eastman Chemical said in a statement that the acquisition will strengthen its presence in markets such as food, feed and agriculture. It also provides opportunities to speed up growth in the personal care, coatings and oil and gas.
The companies put the deal’s total value at about $2.8 billion, which includes $1 billion in debt. The deal includes a 30-day period in which Taminco can seek offers from other potential buyers.
Taminco CEO Laurent Lenoir said in a statement that the acquisition will give the company more resources to put toward its long-term strategy of expanding in key markets and will help to expand into new product lines.
Eastman Chemical said that it will pay for the acquisition with available cash and debt financing.
Both companies’ boards have approved the deal, which is expected to close in the fourth quarter. It still needs approval from a majority of Taminco’s shareholders.
© 2014 The Canadian Press