Purchase will strengthen Eastman in niche markets and offers cost savings
US chemical firm Eastman will acquire Taminco, a global speciality chemical company, for $2.8 billion (£1.7 billion), including net assumed debt of $1 billion. The purchase strengthens Eastman’s presence in attractive niche markets such as food, feed and agriculture. In addition, it provides opportunities to accelerate growth in the personal care, coatings, and oil and gas markets, according to Eastman. The company also added that it would be able to make savings of around 5% of Taminco’s 2013 sales – mostly over the next two years – thanks to corporate and operating cost synergies. There is no word at this stage as to whether these savings will result in job losses.
‘Taminco is a strong fit with Eastman’s strategic focus,’ stated Mark Costa, chairman and chief executive of Eastman. ‘Taminco will add an attractive alkylamines stream to our chemical portfolio,’ he added.