By Dow Jones Business News,
January 28, 2014, 11:41:00 AM EDT
By Everdeen Mason
Eastman Chemical Co. ( EMN ) agreed to acquire the assets of BP Plc's ( BP ) global aviation turbine engine oil unit to
increase its product offerings in the aviation market.
The acquisition, expected to close in the second quarter, should increase Eastman's full-year earnings, the company
said. Financial terms weren't disclosed Tuesday.
Eastman--which makes chemicals, plastics and synthetic fibers--will merge the BP unit into its specialty fluids and
intermediates business, the company said. Currently, Eastman's global aviation product offerings include its Skydrol
aviation hydraulic fluids.
"Eastman will gain a growing and profitable specialty chemical business that aligns well with our existing product
offerings," Chief Operating Officer Ron Lindsay said.
B.P.'s unit has annual revenue of about $100 million, Eastman said. The deal includes a product facility in Linden,
N.J., specialized laboratory equipment in Naperville, Ill., and a long-term supply agreement for the BP unit's products
that BP will use to serve industrial markets.
Eastman has posted double-digit revenue growth for most of the last year. In October, the company reported a surge in
earnings as it posted fewer charges related to its acquisition of Solutia Inc. in 2012.
Shares climbed 1.3% to $75.32 in recent trading. The stock is up 5.2% in the past 12 months.
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