Eastman Chemical (EMN) to Acquire Sterling Chemicals in $100M Cash Deal

Eastman Chemical Company (NYSE: EMN) has entered into an agreement to acquire Sterling Chemicals, Inc., for $100 million in cash, subject to modest deductions at closing as provided in the merger agreement.

The transaction, which includes Sterling’s plasticizer and acetic acid manufacturing assets in Texas City, Texas, is expected to be accretive to Eastman’s full-year 2012 earnings per share in excess of Eastman’s cost of capital.

The transaction, which has been approved by both boards of directors, is expected to be completed after receipt of required regulatory approvals, approval of Sterling’s stockholders, and satisfaction of other customary closing conditions. It is expected to be funded with available cash. Oppenheimer & Co. Inc. is acting as exclusive financial advisor to Eastman on this transaction and Eastman’s legal counsel is Jones Day.

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