Kingsport, Tenn.-based
Eastman Chemical Co. today announced it has completed the sale of its wholly owned subsidiary, Eastman SE Inc., to FutureFuel Corp. Included in the sale are Eastman's Batesville, Ark., manufacturing facility and its related assets and product lines that had been a part of the company's performance chemicals and intermediates segment.
The sale is for a purchase price of $75 million plus an earn-out based on biodiesel sales over the next three years, according to Eastman. The manufacturing facility produces specialty chemicals and chemical intermediates used in detergents, pharmaceuticals, food additives, paints, coatings, fibers and herbicides. It was also the first biodiesel producer in Arkansas when it opened in fall 2005. The plant initially produced 3 MMgy but expanded to 18 MMgy earlier this year, according to Gary McDonald, Eastman SE's manager of administration.
A message left with FutureFuel Corp, formerly Viceroy Acquisition Corp., went unreturned at press time. However, the company previously said it plans to aggressively expand biodiesel production at the site.
In July 2006 Eastman announced plans to sell the site because the growth opportunities didn't fit with the company's focus of driving growth in its core businesses. "This divestiture is expected to result in a better alignment of Eastman's resources with our strategy," said Jim Rogers, president of Eastman Chemical and head of the chemicals and fibers business group. "And we believe that FutureFuel Chemical Company is positioned well to explore the unique growth opportunities available to the site."
Dave Nilles is Online Editor for
Biodiesel Magazine. Reach him at dnilles@bbibiofuels.com or (701) 373-0636.
Posted: 12:55 p.m. CST Wednesday, November 1, 2006