Eastman Chemical has bought Solutia Inc., a maker of heat transfer fluids and other chemicals based in St. Louis. Eastman, Kingsport, Tenn., acquired Solutia for $4.8 billion. The acquisition is expected to expand Eastman’s geographic reach, especially in emerging markets, and establishing a more diverse and sustainable product portfolio, according to the company.

With the acquisition, Eastman has made structural and reporting changes, resulting in five reporting segments:
  • Specialty Fluids and Intermediates consists of the specialty fluids product lines from Solutia’s former Technical Specialties segment and Eastman’s oxo and acetyl intermediates product lines of its former PCI segment.

  • Additives and Functional Products consists of the rubber materials product lines from Solutia’s former Technical Specialties segment and the specialty polymers and solvents product lines of Eastman’s former Coatings, Adhesives, Specialty Polymers and Inks (CASPI) segment.

  • Adhesives and Plasticizers consists of the plasticizer product lines of Eastman’s former Performance Chemicals and Intermediates segment, and the adhesives product lines formerly in its CASPI segment.

  • Advanced Materials consists of Eastman’s former Specialty Plastics segment and Solutia’s former Performance Films and Advanced Interlayers segments.

  • Fibers, which continues to consist of the acetate tow, acetate yarn and acetyl product lines.
Solutia’s Photovoltaics business will be managed as a developing business initiative and reported as “other” sales and operating earnings (loss).