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Eastman Completes Sale of Portions of CASPI to Apollo Management

Published on 2004-08-03. Author : SpecialChem

 

NEW YORK and KINGSPORT, Tenn. -- Apollo Management, L.P., a private investment firm, and Eastman Chemical Company (NYSE:EMN) announced on 2nd August, 2004, that they have completed the sale of certain businesses and product lines in Eastman's coatings, adhesives, specialty polymers and inks (CASPI) segment to Apollo.

"Completing this divestiture results in a better alignment of company resources with our strategy going forward," said Brian Ferguson, Eastman's chairman and CEO. "We're pleased that these businesses and product lines are now part of a company where they are a better fit for future plans. And I want to especially recognize the employees in these businesses who have maintained a focus on meeting customers' needs as we worked with Apollo to close this sale. This divestiture represents a major milestone in Eastman's ongoing strategy to improve the company's profitability."

Apollo said the new company will be named Resolution Specialty Materials, Inc. (RSM), and will be based in Houston, Texas. RSM will be led by Jeff Nodland, a 25-year veteran of the coatings and composites industry.

"This event is obviously a milestone for Resolution Specialty Materials, as it emerges as a strongly situated, independent supplier of a broad range of chemicals for the coatings, composites, graphics arts and textile industries, among others," said Nodland. "With the talented employees we inherited, we are confident of the Company's ability to continue to provide a high level of services to existing customers, while also growing the business."

As previously announced, the following Eastman businesses and product lines are included in the divestiture: acrylate ester monomers, composites (unsaturated polyester resins), inks and graphics arts raw materials, liquid resins, powder resins and textile chemicals. Manufacturing sites divested include: Pleasant Prairie, Wis.; LaVergne, Tenn.; Carpentersville, Ill.; Roebuck, S.C.; Lynwood, Calif.; Columbus and Forest Park, Ga.; and Ennis, Texas, in the United States. Sites outside the U.S. include: Kallo, Belgium; Sant' Albano and Cola' di Lazise, Italy; Molndal, Sweden; Hamburg, Germany; Sokolov, Czech Republic; and Tianjin, Nanping and Funing, People's Republic of China. Approximately 2,100 employees are associated with the businesses and sites acquired by Apollo.

With headquarters in Kingsport, Tenn., Eastman manufactures and markets chemicals, fibers and plastics. The company has approximately 13,000 employees and had 2003 sales of $5.8 billion.

Apollo Management, L.P., founded in 1990, is among the most active and successful private investment firms in the U.S. in terms of both number of investment transactions completed and aggregate dollars invested. Since its inception, Apollo has managed the investment of an aggregate of approximately $13 billion in equity capital in a wide variety of industries, both domestically and internationally.

Source: Eastman; Apollo Management, L.P.


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