Eastman Completes Hercules acquisition

03 May 2001

Eastman Chemical Company has completed the asset acquisition of the hydrocarbon resins and select portions of the rosins resins business from Hercules Incorporated. The purchase price was approximately $244 million.

Earnest W. Deavenport Jr., chairman and chief executive officer, said that based on 2000 results, the acquisition is expected to increase Eastman's presence in the coatings, adhesives, specialty polymers and inks product lines to approximately US$2 billion in annual revenues. ""The series of acquisitions we've completed over the past few years position us well as a leader in this industry,"" Deavenport said. Brian Ferguson, president of Eastman's Chemicals Group, said, ""Now that the acquisition is complete, we will begin combining the former Hercules businesses with our existing business. We're very pleased to be able to offer our customers the broadest and most diverse range of resin raw materials for the adhesives industry.""

Headquartered in Kingsport, Eastman manufactures and markets plastics, chemicals and fibers. The company has approximately 15,000 employees in 30 countries and had 2000 sales of $5.3 billion.

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