Acquisition will enable continued Fibers apparel market growth
KINGSPORT, Tenn., June 19, 2019 - Eastman Chemical Company (NYSE:EMN) today announced that it has entered into a definitive agreement to acquire Industrias del Acetato de Celulosa S.A. (INACSA), a Spanish producer of cellulosic yarn. The INACSA yarn business and assets are expected to support continued growth of Naia cellulosic yarn for the apparel market and will become part of the global Fibers segment supply base.
"With the acquisition of INACSA, Eastman gains a well-respected yarn producer and a European site that will enhance our ability to support the global textiles supply chain," said Brad Lich, executive vice president and chief commercial officer. "We look forward to welcoming the INACSA employees to the Eastman team."
Subject to receipt of required regulatory approvals and satisfaction of other customary closing conditions, Eastman will acquire the entire yarn business and assets from INACSA, including the plant and assets in La Batllòria, Spain, formulations and intellectual property and customer contracts. The acquisition is expected to be completed in the third quarter of 2019. Terms of the transaction were not disclosed.
"This bolt-on acquisition is consistent with the company's growth strategy and objective of delivering superior value through disciplined and balanced uses of cash for dividend payments, debt repayment, share repurchases, and organic and inorganic growth initiatives," Lich added.
About Eastman
Eastman is a global specialty materials company that produces a broad range of products found in items people use every day. With the purpose of enhancing the quality of life in a material way, Eastman works with customers to deliver innovative products and solutions while maintaining a commitment to safety and sustainability. The company's innovation-driven growth model takes advantage of world-class technology platforms, deep customer engagement, and differentiated application development to grow its leading positions in attractive end-markets such as transportation, building and construction, and consumables. As a globally inclusive and diverse company, Eastman employs approximately 14,500 people around the world and serves customers in more than 100 countries. The company had 2018 revenues of approximately $10 billion and is headquartered in Kingsport, Tennessee, USA. For more information, visit www.eastman.com (http://www.eastman.com/).
Forward-Looking Statements:
This release includes forward-looking statements regarding Eastman's current expectations regarding the timing of completion of the acquisition, integration plans, and expected business, financial, and strategic benefits of the acquisition. Such expectations are based upon certain preliminary information, internal estimates, and management assumptions, expectations, and plans, and are subject to a number of risks and uncertainties inherent in projecting future conditions, events, and results. Actual results could differ materially from expectations expressed in the forward-looking statements if one or more of the underlying assumptions or expectations prove to be inaccurate or are unrealized. Important factors that could cause actual results to differ materially from such expectations are and will be detailed in the company's filings with the Securities and Exchange Commission ("SEC"), including the Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 that has been filed with the SEC. Filings made by Eastman are available when filed with the SEC on the Eastman web site at www.eastman.com in the Investors, SEC Information section.
# # #
Contacts:
Media: Kristin Parker
423-229-2526 / kristin@eastman.com (mailto:kristin@eastman.com)
Investors: Greg Riddle
212-835-1620 / griddle@eastman.com (mailto:griddle@eastman.com)
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Eastman Chemical Company via Globenewswire
