Eastman Chemical Company
) has entered into a definitive deal to acquire Commonwealth
Laminating & Coating, Inc. The acquisition, which is subject
to the receipt of necessary regulatory approvals and other
closing conditions, is expected to complete in the second half of
2014. Terms of the deal were not disclosed.
Commonwealth, which had sales of roughly $130 million last
year, is a manufacturing company with a strong emphasis on solar
control window films and precision as well as high-performance
The acquisition will include Commonwealth's manufacturing
facility and master distribution center in Martinsville, Va., and
nine sales distribution centers that serve the global market.
Once the transaction is complete, Commonwealth will become
part of Eastman's Advanced Materials segment. With the
acquisition of Commonwealth, Eastman will extend its performance
films global offerings for solar control window film and
protective film applications.
With the acquisition, Eastman will be able to provide targeted
and effective product, brand, and service solutions to meet the
specific needs of its varied customer base. Eastman will also be
able to increase its customer adoption and window films
Eastman expects its performance films products to grow with
the inclusion of Commonwealth's expertise, paint protection
technology, brand and channels and its experienced workforce. The
deal is expected to be accretive to the first full-year of
earnings following acquisition, excluding acquisition-related
costs and charges.
Eastman Chemical currently holds a Zacks Rank #3 (Hold).
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