Eastman Chemicals has ageed to buy performance materials and speciality chemicals company, Solutia.
Eastman, headquartered in Tennessee, is set to spend around $4.7bn to purchase the total shareholding in the Missouri-based company which specialises in products including peformance films and hydraulic fluids for the construction, automotive and aviation industries.
Solutia will, according to Eastman CEO, Jim Rogers, "broaden our geographic reach into emerging geographies, particularly Asia Pacific, establish a powerful combined platform with extensive organic growth opportunities, and expand our portfolio of sustainable products, all of which are consistent with our growth strategy."
The deal will see Eastman increase its 10,000-strong workforce by a further 3,400 employees who work in Solutia's 50 locations across the world. The new acquistion will also boost revenues - Eastman revealed sales of $7.2bn for the whole of 2011 - and increased it's expected earnings per share to more than $6 as a result of the deal.