Chemical company Eastman Chemical Company (EMN) has entered into a definitive deal to acquire Commonwealth Laminating & Coating, Inc. The acquisition, which is subject to the receipt of necessary regulatory approvals and other closing conditions, is expected to complete in the second half of 2014. Terms of the deal were not disclosed.
Commonwealth, which had sales of roughly $130 million last year, is a manufacturing company with a strong emphasis on solar control window films and precision as well as high-performance coatings.
The acquisition will include Commonwealth’s manufacturing facility and master distribution center in Martinsville, Va., and nine sales distribution centers that serve the global market.
Once the transaction is complete, Commonwealth will become part of Eastman’s Advanced Materials segment. With the acquisition of Commonwealth, Eastman will extend its performance films global offerings for solar control window film and protective film applications.
With the acquisition, Eastman will be able to provide targeted and effective product, brand, and service solutions to meet the specific needs of its varied customer base. Eastman will also be able to increase its customer adoption and window films globally.
Eastman expects its performance films products to grow with the inclusion of Commonwealth’s expertise, paint protection technology, brand and channels and its experienced workforce. The deal is expected to be accretive to the first full-year of earnings following acquisition, excluding acquisition-related costs and charges.
Eastman Chemical currently holds a Zacks Rank #3 (Hold).
Some better-ranked stocks in the chemical industry include Methanex Corp. (MEOH), Akzo Nobel NV (AKZOY) and The Dow Chemical Company (DOW). While Methanex carries a Zacks Rank #1 (Strong Buy), Akzo Nobel and Dow retain a Zacks Rank #2 (Buy).
Read the Full Research Report on EMN
Read the Full Research Report on MEOH
Read the Full Research Report on AKZOY
Zacks Investment Research
- Basic Materials Industry
- Finance Trading
- Eastman Chemical Company