KINGSPORT — Eastman Chemical Co. announced Tuesday that it has entered into a definitive agreement to acquire the assets of BP’s global aviation turbine engine oil business, with annual revenues of approximately $100 million.
The acquisition includes a production facility in Linden, N.J., specialized laboratory equipment located in Naperville, Ill., and a long-term supply agreement for products related to the acquired business that BP will use to serve industrial markets, according to a prepared release.
When added to its Skydrol® aviation hydraulic fluids, the acquired fluids product portfolio is expected to enable Eastman to better meet the global aviation industry’s needs. Subject to receipt of required regulatory approvals and satisfaction of other customary closing conditions, the acquisition is expected to be completed in the second quarter of 2014. Terms of the transaction were not disclosed.
“With the acquisition of BP’s global aviation turbine oil business, Eastman will gain a growing and profitable specialty chemical business that aligns well with our existing product offerings,” said Ron Lindsay, Eastman’s chief operating officer. “This acquisition is consistent with our objective of consistent superior value through disciplined capital allocation including bolt-on acquisitions.”
The acquisition is expected to be accretive to Eastman’s full-year 2014 earnings excluding acquisition-related costs and charges. Following the completion of the transaction, the aviation turbine oil business will become part of Eastman’s Specialty Fluids & Intermediates segment.
Eastman said Moelis & Company is acting as exclusive financial adviser and Jones Day is serving as legal counsel for the company on this transaction.
For more information about Eastman, visit www.eastman.com.