Commonwealth Laminating & Coating Inc. (CLC) has entered into a definitive agreement to be acquired by Eastman Chemical Co.
“We believe that this merger will benefit CLC’s employees and customers. We have come to know that Eastman values the SunTek brand, the experience and dedication of our global workforce, our innovative products and technology, and our diverse and loyal customer base. We feel confident that Eastman is the right partner for us,” says Steve Phillips, president and CEO. “CLC will continue to provide our customers with an exceptional level of quality, service and support.”
CLC said in a press release issued yesterday that it is a strong, strategic fit for Eastman’s performance films business, headquartered in Kinsport, Tenn. CLC added that is confident in Eastman’s shared commitment to serving and growing the window and protective film markets, innovation through product and process development and superior customer service and support. CLC also brings to Eastman an experienced and proven workforce, a state-of-the art manufacturing facility, a complementary brand and product portfolio, and a broad geographic footprint.
“With Commonwealth, Eastman extends our performance films global offerings for solar control window film and protective film applications. Adding Commonwealth supports our strategy of providing targeted and effective product, brand, and service solutions to meet the specific needs of our global, diverse customers and end-users,” says Brad Lich, executive vice president for Eastman.
According to a statement from Eastman, with the addition of Commonwealth’s expertise, paint protection technology, brand and channels, and experienced workforce, Eastman expects continued growth in its performance films products. Subject to receipt of required regulatory approvals and satisfaction of other customary closing conditions, the acquisition is expected to be completed in the second half of 2014. Terms of the transaction were not disclosed.
“This acquisition will allow Eastman to gain efficiencies through enhanced utilization of manufacturing assets. It will also enable Eastman to better serve the window and protective films’ broad and diverse customer base while complementing our strategies to increase consumer adoption and use of window films globally,” says Travis Smith, vice president and general manager, performance films for Eastman. “Eastman is fully committed to providing continued superior service and support to customers worldwide as we successfully integrate these two businesses.”
The deal will include CLC’s manufacturing facility and master distribution center in Martinsville, Va., and nine sales distribution centers that serve the global market. Eastman officials say the acquired business is expected to be accretive to the first full-year of earnings post-acquisition, excluding acquisition-related costs and charges. Following the completion of the transaction, the acquired business will become part of Eastman’s Advanced Materials segment.