March 21, 2010 (FinancialWire) — Eastman Chemical Co. (NYSE: EMN) said it has entered into a definitive agreement to acquire Genovique Specialties Corp., a producer of specialty plasticizers, benzoic acid, and sodium benzoate.

Terms of the transaction were not disclosed. Eastman said it expects that the transaction will be accretive to its full-year 2010 earnings per share. Following the completion of the transaction, Genovique Specialties, including its manufacturing operations in Chestertown, Maryland, Kohtla-Järve, Estonia, and its joint venture in Wuhan, China, will become part of Eastman's Performance Chemicals and Intermediates segment.

Eastman is currently a supplier in North America and Europe of general purpose non-phthalate plasticizers for flexible PVC applications. Genovique Specialties is a global producer of specialty non-phthalate plasticizers based on benzoic acid for water based adhesives, a new product line for Eastman.

Eastman said that Genovique’s production and distribution capabilities and customer relationships in Europe and Asia also enhance its diversification in regions targeted for growth.

The company added that it expects to fund the acquisition with available cash. Tennessee-based Eastman makes chemicals, fibers and plastics used as ingredients in a range of common products.

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