After exiting the nylon business, Solutia's remaining products consisted of Saflex PVB glass interlay; CPFilms UV-protection aftermarket window films; and technical specialties including Flexsys family of rubber industry chemicals; Skydrol aviation hydraulic fluid; and Therminol heat-transfer fluid.
Eastman, which itself exited the polyethylene terephthalate (PET) market, selling the business to DAK at the start of 2011, will pay Solutia shareholders with cash and stock valued at $27.65 per Solutia common share, representing a 42% premium on the share price. Eastman will also assume Solutia's debt.
Solutia, which has four manufacturing sites in China, will push Eastman's percentage of revenue generated in Asia Pacific from 23% in 2011 to as estimated 28% by 2015, climbing from $1.7 billion to $3 billion. Solutia's 2011 revenue of $2 billion, was well distributed globally, coming from Europe (34%), Asia Pacific (30%), the U.S. (25%), with the rest of the world generating the remaining 11%.
Eastman also announced it's fourth quarter and full-year earnings, noteing that sales revenue increased by 23% in 2011, a year when it acquired three businesses: Sterling Chmicals, Scandiflex, and Dynaloy.
Its specialty plastics business, saw a 7% increase in sales for the fourt hquarter, with full fiscal year sales up 15% to $1.195 billion.