Eastman Chemical to Acquire BP's Global Aviation Turbine Business

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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.

Write to Everdeen Mason at everdeen.mason@wsj.com

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  01-28-141141ET
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This article appears in: News Headlines

Referenced Stocks: BP , EMN

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