Eastman Chemical Company (NYSE:EMN) announced that it has completed the previously reported sale of its Texas City Operations to INEOS Acetyls. Texas City Operations was previously part of Eastman’s Chemical Intermediates segment. Eastman has retained ownership of its plasticizer business at the site, which INEOS now operates for Eastman as part of this agreement. Eastman will also continue to manufacture acetyls at its Tennessee Operations in Kingsport.
The total sale price of $490 million consists of approximately $415 million cash at closing and the remainder in equal installments on the first and second anniversaries of the closing. The final purchase price is subject to working capital and other customary post-closing adjustments. Proceeds from the divestiture in the near term are expected to be used for debt repayment.