ADVERTISEMENT
2 /3 FREE ARTICLES LEFT THIS MONTH Remaining
Chemistry matters. Join us to get the news you need.

If you have an ACS member number, please enter it here so we can link this account to your membership. (optional)

ACS values your privacy. By submitting your information, you are gaining access to C&EN and subscribing to our weekly newsletter. We use the information you provide to make your reading experience better, and we will never sell your data to third party members.

ENJOY UNLIMITED ACCES TO C&EN

Business

Eastman Is Selling Batesville Plant

Buyer is a start-up looking to grow in the U.S. biofuels sector

by Alexander H. Tullo
July 26, 2006 | APPEARED IN VOLUME 84, ISSUE 31

CHANGING HANDS
[+]Enlarge
Credit: EASTMAN
Eastman is selling this facility in Batesville, Ark.
7917NOTW6_plant.JPG
Credit: EASTMAN
Eastman is selling this facility in Batesville, Ark.

Eastman Chemical is selling its Batesville, Ark., plant to biofuels start-up company Viceroy Acquisition Corp. in a deal valued at more than $75 million.

The multipurpose plant manufactures specialty chemicals such as food supplements, photographic chemicals, and the bleach activator nonanoyloxybenzenesulfonate (NOBS), which is supplied to Procter & Gamble. In 2005, Eastman began rolling out agriculture-based products there including biodiesel, bioethanol, and lignin/biomass solid fuels, as well as biomass-based lubricants, solvents, and intermediates. The plant employs about 410 people.

Eastman President Jim Rogers says the plant "does not fit with the company's current strategy of driving growth in our core businesses and taking full advantage of new growth opportunities."

Eastman will receive $75 million upon the close of the deal, which is expected during the fourth quarter of this year. Viceroy will also pay Eastman 2 cents per gal for the biodiesel produced at the site for three years.

Viceroy, which is based in the U.S., raised $180 million earlier this month through an initial public offering on the London Stock Exchange's AIM market. The company is trying to enter the U.S. biofuels market.

X

Article:

This article has been sent to the following recipient:

Leave A Comment

*Required to comment