Eastman Chemical Company has signed a definitive agreement to purchase Solutia, a provider of performance materials and specialty chemicals.
Solutia stockholders will each receive $22 in cash and 0.12 shares of Eastman common stock for each share of Solutia common stock, as per the agreement.
Eastman chairman and CEO Jim Rogers said the acquisition of Solutia will strengthen Eastman as a top-tier specialty chemical company.
"The addition of Solutia will broaden our geographic reach into emerging geographies, particularly Asia Pacific, establish a powerful combined platform with extensive organic growth opportunities, and expand our portfolio of sustainable products, all of which are consistent with our growth strategy," Rogers added.
Eastman said it expects to have a compound annual growth rate in Asia Pacific approaching 10% for the next several years.
Solutia chairman Jeffry Quinn said: "This transaction provides Solutia's shareholders with immediate value and an attractive premium, as well as the opportunity to benefit from the future prospects of a global chemicals producer with the financial strength."
Solutia products include Saflex polyvinyl butyral interlayers used for glass lamination and Vistasolar ethylene vinyl acetate films for photovoltaic module encapsulation.
The LLumar, Vista, EnerLogic, FormulaOne, Gila, V-KOOL, Huper Optik, IQue, Sun-X and Nanolux aftermarket performance films are used for automotive and architectural applications.
Solutia also provides XIR and Heat Mirror performance films which are incorporated into aftermarket window films, laminated glass products and suspended insulated glass units, used in automotive and architectural applications.
