New York-based private equity firm Apollo Management has agreed to acquire certain business and product lines from Eastman Chemical for $215 million (€175 million).
The transaction includes $165 million in cash and a $50 million note payable to Eastman, which is selling off its coatings, adhesives, specialty polymers and inks (CASPI) segment. Eastman had announced plans in August to restructure, divest or consolidate these businesses.
Upon completion of the deal, Apollo will assume control of about 14 percent of Eastman’s workforce, or about 2,100 people. Eastman, headquartered in Kingsport, Tennessee, manufactures and markets chemicals, fibers and plastics, and is the largest maker of plastic for beverage bottles. The company reported 2003 global sales of $5.8 billion.
In a statement, Apollo founding partner Josh Harris said the businesses segments operate in sectors that ‘should exhibit attractive growth in the future.’
Apollo Management, founded in 1990, currently manages approximately $13 billion in capital. In October, the firm agreed to acquire the crop protection chemical division of ConAgra Foods for approximately $600 million. In September, Apollo Management joined a private equity consortium in acquiring Ondeo Nalco, the water-treatment and chemical-processing division of French industrial conglomerate Suez SA, for $4.2 billion.
The firm closed its fifth fund on $3.8 billion in May 2002.