Eastman Sells PET Business to DAK Americas

Eastman Chemical Company has entered into a definitive agreement with DAK Americas to sell the PET business and related assets and technology of its Performance Polymers segment. The transaction is expected to close during Q4 of 2010. The total cash proceeds of the transaction are expected to be $600 million, with the final purchase price subject to working capital adjustments at closing. The company expects to recognize a modest gain from the sale.

Three months ago, Eastman reported continued difficult market conditions for PET in North America, which limited the ability to offset higher raw material and energy costs with higher selling prices. In conjunction with the sale of the Performance Polymers PET business, the company has approved a restructuring plan to reduce costs and will recognize severance restructuring charges in the fourth quarter.

Not so long ago, in March 2010 Eastman filed a lawsuit against DAK Americas in connection with their unauthorized use of IntegRex PET technology.