Eastman's Strategic Sale: Texas City Operations Finds A New Home With INEOS Acetyls For $490M

Specialty materials company Eastman Chemical Company EMN has entered into a definitive agreement to sell its Texas City Operations, located in Texas City, Texas, to INEOS Acetyls for $490 million.

INEOS Acetyls is a global manufacturer and supplier of acetic acid and related chemicals owned by the INEOS Group. 

Texas City Operations is currently part of Eastman's Chemical Intermediates segment.

Eastman will retain ownership of its plasticizer business at the site, which INEOS will operate for Eastman as part of the agreement. 

Both the parties have also entered into a Memorandum of Understanding to explore options for a long-term agreement for supplying vinyl acetate monomer (VAM) to Eastman.

The sale price consists of approximately $415 million cash at closing and the remainder in equal installments on the first and second anniversaries of the closing.

The company expects the sale to be accretive to adjusted earnings per share in 2024.

Eastman intends to use the proceeds in the near term for debt repayment. The transaction is expected to be completed in the fourth quarter of 2023. 

Eastman will continue to manufacture acetyls at its Tennessee Operations in Kingsport.

Price Action: EMN shares are trading higher by 3.05% at $76.92 on the last check Thursday.