Eastman’s adhesive resins business produces tackifying resins and additives for adhesive products, which are suitable for use in various end markets such as packaging and hygiene
Synthomer has agreed to acquire Eastman’s adhesive resins business. (Credit: Gerd Altmann from Pixabay)
Chemical company Synthomer has agreed to acquire adhesive resins assets and business from Eastman Chemical and certain of its subsidiaries for $1bn in cash.
Eastman’s adhesive resins business is involved in the development, manufacturing and selling of tackifying resins and additives for adhesive products.
These adhesive products are suitable for use in various end markets such as packaging, hygiene, and high-performance tyre additives.
Under the deal, Synthomer will acquire hydrocarbon resins such as Eastman Impera tire resins and pure monomer resins.
The acquisition also consists of pure monomer resins, polyolefin polymers, resins and dispersions, and oleochemical and fatty-acid based resins product lines.
Eastman board chair and CEO Mark Costa said: “We are pleased to reach this agreement and that our adhesives resins business now has a clear path forward.
“We will continue to focus on leveraging our innovation-driven strategy to grow our speciality businesses within AFP and deliver strong earnings growth.”
At present, the business is part of Eastman’s additives and functional products segment.
The acquisition, which also covers six plants, is expected to help Synthomer to enhance its exposure to potential end markets and expand its geographic footprint.
With around 650 employees, the acquired business has well-invested assets with a global leading position in adhesives.
Synthomer chief executive Calum MacLean said: “Acquiring adhesive resins delivers on that ambition, giving us a leading position in the growing global adhesives market and extending our portfolio of differentiated products and sustainable solutions.
“It is a business that we have long admired, and I am confident that the combination of Synthomer and Adhesive Resins will drive meaningful value for all stakeholders in the years ahead.”
The deal, subject to regulatory approvals and satisfaction of other customary closing conditions, is expected to be completed in the first quarter of 2022.
J.P. Morgan Securities acted as an exclusive financial advisor, while Jones Day served as a legal advisor to Eastman.
Earlier this year, Eastman announced plans to build a plastic-to-plastic molecular recycling facility at its Kingsport site in the US state of Tennessee.