Eastman Completes Sterling Acquisition

Eastman Chemical said Tuesday that it has completed the acquisition of Sterling Chemicals for $100 million in cash. The deal was originally announced in June.

Excluding costs and charges related to the acquisition, the acquired business is expected to be slightly accretive to 2011 earnings per share and accretive to 2012 earnings per share above the company's cost of capital, Eastman Chemical said.

The acquisition includes Sterling's plasticizer and acetic acid manufacturing assets in Texas City, Texas.

Eastman plans to modify and restart the currently idled plasticizer manufacturing facility to produce non-phthalate plasticizers, including Eastman 168 non-phthalate plasticizers. The company said additional capacity will enable the company's Performance Chemicals and Intermediates segment to serve the growing market demand for non-phthalate alternatives.