Dec 24 2007
Eastman Chemical Company today announced it has entered into definitive agreements with Indorama to sell its PET facility and related businesses in the United Kingdom, and its PET and PTA facilities and related businesses in the Netherlands. The total cash proceeds of the transaction are expected to be €226 million or approximately US $330 million, subject to adjustments in working capital. The transaction is expected to close during the first quarter of 2008 and will result in a gain on sale being reflected in the Company's consolidated financial statements.
"This transaction will complete the plan we announced one year ago to address our non-strategic PET assets outside the U.S.," said Gregory O. Nelson, Eastman executive vice president and polymers business group head. "This is an important step in our broader strategy to improve the overall performance of our PET polymers business."
The sale, which is subject to customary conditions and competition authority approval, includes Eastman's PET manufacturing facility in Workington, United Kingdom, and its PET and PTA manufacturing facilities in Rotterdam, the Netherlands. Eastman's acetate tow production at the Workington site is not included in the sale.
Financial results for all European PET facilities, including both Rotterdam, the Netherlands, and Workington, United Kingdom, as well as for the San Roque, Spain, site, which was divested in April 2007, will be reported as discontinued operations in fourth quarter 2007. The treatment of these financial results as discontinued operations is not expected to have a material impact on the Company's earnings from continuing operations in fourth quarter 2007 or its earnings from continuing operations excluding asset impairments and restructuring charges in full year 2007.