Summary Box: Eastman Chemical buying Solutia

AP News
Posted: Jan 27, 2012 11:52 AM
Summary Box: Eastman Chemical buying Solutia

THE NEWS: Eastman Chemical Co., a specialty chemical company, is purchasing Solutia Inc. in a cash-and-stock deal valued at about $3.38 billion.

THE REASON: The buyout will help Eastman Chemical broaden its presence in emerging markets like the Asia Pacific region and bolster its product offerings.

THE DETAILS: Solutia shareholders will receive $22 in cash and 0.12 shares of Eastman Chemical stock for each share held. Based on Thursday's closing prices, Solutia shareholders will receive cash and stock valued at $27.65 per Solutia share. The companies value the transaction, including debt, at about $4.7 billion.