By The Associated Press
Wednesday, March 17, 2010
Eastman Chemical Co. on Wednesday said it will buy chemical maker Genovique Specialties Corp. in a move to expand its position in the specialty plasticizers market.
Genovique makes plasticizers, benzoic acid and sodium benzoate. Plasticizers increase the flexibility of a variety of materials. Benzoic acid and sodium benzoate are antimicrobial preservatives used to lengthen the shelf life of food, drinks, animal feed and pharmaceuticals. Benzoic acid is also used to make chemicals for paint and personal health care goods. It is also a key ingredient for benzoate plasticizers used to make PVC.
"This acquisition aligns with Eastman's strategic goals of investing in differentiated, sustainably-advantaged products and diversifying into emerging geographies," said CEO Jim Rogers in a statement.
Eastman said the deal is expected to add to its full-year 2010 earnings per share. Financial terms of the deal were not disclosed.
Shares of Eastman rose 24 cents to $62.46 in morning trading.
