Eastman Officials Expect Solutia Acquisition to Increase Growth Rate in Asia Pacific
February 2, 2012
by Sahely Mukerji, email@example.com
Eastman Chemical Co. officials consider the recent acquisition of Solutia Inc. of St. Louis, an important step in Eastman’s strategy to extend its global presence in emerging markets, in particular in Asia Pacific, says Tracy Broadwater, corporate communications manager of Eastman. “By leveraging infrastructure in the region, Eastman expects to have a compound annual growth rate in Asia Pacific approaching 10 percent for the next several years,” she says.
Solutia manufactures a number of glass-related products, including polyvinyl butyral interlayers (PVB) interlayers for windshields.
The time was ripe for the acquisition, Broadwater says. “Solutia is a good investment that is well-managed with well-established businesses,” she says. “Eastman has been aggressively pursuing a growth strategy, and acquisitions have been an important part of that strategy. We have made a number of acquisitions over the past two years, and though this is the largest of those, we are approaching this acquisition of from a position of strength.”
Regarding changes at Solutia as a result of the acquisition, Broadwater says “recognizing that we haven’t even closed on the deal at this point, it would be premature to comment until we are further in the process.”
The transaction is expected to close in mid-2012. “Due to the size of this acquisition we expect a great deal of our focus will be spent integrating Solutia into Eastman,” she says. “However, we expect to continue to evaluate appropriate opportunities for expansion on a number of fronts, including emerging markets, access to feedstock, differentiated products or markets and sustainability, which have been Eastman’s key focus areas for M&A [marketing and analysis] opportunities.”
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