Eastman Sells Rubber Additives to One Rock
Eastman Chemical has agreed to sell several rubber additives lines and related technology assets of its tire additives business to an affiliate of One Rock Capital Partners for $800 million. The deal does not include the Impera and other performance resins product lines of the tire additives business, which accounted for 14% of the company’s 2020 sales of $8.47 billion.
One Rock described Eastman’s tire additives business as a “global leader in critical specialty chemicals for the tire industry with an unmatched asset footprint and superior technical services.” The business develops, manufactures and sells insoluble sulfur, antidegradants and post-vulcanization stabilizers for tire manufacturers. It employs more than 500 people globally at seven production sites and two technology centers.
The New York-based investor will pay $725 million cash at closing and an extra $75 million based on how the rubber additives business performs post-closing through 2023. The sale is expected to close in the second half of 2021.
Mark Costa, Eastman’s board chair and CEO, said the move is part of ongoing efforts to improve the performance of its Additives & Functional Products segment. He commented: “After reviewing strategic options, we believe this action is the most beneficial to Eastman and the rubber additives business. We continue to evaluate other actions to improve our AFP segment.”
Author: Elaine Burridge, Freelance Journalist
