Feb 16 2008
MeadWestvaco Corporation Specialty Chemicals Division today announced the signing of a definitive agreement to acquire Eastman Chemical Company’s pine chemicals product lines. The acquisition of Eastman’s tall oil rosins and tall oil fatty acids product lines, which are used in the production of paper chemicals, ink resins, paints, coatings, building materials and other pine chemicals applications, will expand MeadWestvaco’s Specialty Chemicals’ Performance Chemicals business.
This transaction, expected to close by the end of February 2008, will result in MeadWestvaco acquiring all intellectual property and technology associated with Pamite® tall oil rosins and Pamak® tall oil fatty acids now manufactured at Eastman’s Franklin, Virginia, plant. MeadWestvaco will transition production to its Specialty Chemicals plants in DeRidder, Louisiana, and Charleston, South Carolina. Eastman will continue to own, operate and sell the Pamolyn® product line manufactured in Franklin, Virginia.
“This acquisition underscores our commitment to achieving sustainable, profitable growth in Specialty Chemicals,” said Ed Rose, vice president, MeadWestvaco Specialty Chemicals Performance Chemicals. “The integration of the Pamite and Pamak technologies into our world-class refineries will allow us to continue to enhance our manufacturing efficiency and provide unparalleled value and innovation to our customers."
"This signing marks another important step in our plan to maximize stockholder value and will result in a better alignment of Eastman's resources with our strategy," said Jim Rogers, president of Eastman Chemical Company and head of the chemicals and fibers business group. The pine chemicals product lines were previously reported in Eastman’s coatings, adhesives, specialty polymers and inks (CASPI) segment.