Benzinga | Jun 9, 2021 08:31AM EDT

Eastman To Sell Tire Additives Business Product Lines For $800M

Eastman Chemical Company (NYSE:EMN) announced it has entered into a definitive agreement with an affiliate of One Rock Capital Partners, LLC ("One Rock") to sell the rubber additives (including Crystex(tm) insoluble sulfur and Santoflex(tm) antidegradants) and other product lines and related assets and technology of the global tire additives business of its Additives & Functional Products segment. The sale does not include the Eastman Impera(tm) and other performance resins product lines of the tire additives business.

The total sale price of $800 million consists of $725 million cash at closing and an additional amount of up to $75 million to be paid based on performance of the rubber additives business post-closing through 2023. The final purchase price is subject to working capital and other adjustments at closing. The company expects the sale will be either neutral or accretive to adjusted earnings per share in 2022.