Eastman Chemical Co. officials consider the recent acquisition of Solutia Inc. of St. Louis, an important step in Eastman’s strategy to extend its global presence in emerging markets, in particular in Asia Pacific, says Tracy Broadwater, corporate communications manager of Eastman. “By leveraging infrastructure in the region, Eastman expects to have a compound annual growth rate in Asia Pacific approaching 10 percent for the next several years,” she says. 

Solutia is a manufacturer of performance materials and specialty chemicals, primarily in the construction, transportation, energy and manufacturing markets.

The time was ripe for the acquisition, Broadwater says. “Solutia is a good investment that is well-managed with well-established businesses,” she says. “Eastman has been aggressively pursuing a growth strategy, and acquisitions have been an important part of that strategy. We have made a number of acquisitions over the past two years, and though this is the largest of those, we are approaching this acquisition from a position of strength.” 

None of those acquisitions were in the glass and glazing industry, Broadwater clarifies. 

Currently, Eastman is one of the largest companies in its field with a combined EBITDA margin of approximately 20 percent and an EBITDA of approximately $1.8 billion. “This acquisition will strengthen Eastman as a top-tier North American chemical company,” Broadwater says. 

Regarding changes at Solutia as a result of the acquisition, Broadwater says “recognizing that we haven’t even closed on the deal at this point, it would be premature to comment until we are further in the process.” The transaction is expected to close in mid-2012. “Due to the size of this acquisition we expect a great deal of our focus will be spent integrating Solutia into Eastman,” she says. “However, we expect to continue to evaluate appropriate opportunities for expansion on a number of fronts, including emerging markets, access to feedstock, differentiated products or markets and sustainability, which have been Eastman’s key focus areas for M&A [marketing and analysis] opportunities.”

The transaction also is “expected to deliver immediate value to our stockholders in the form of accretion and strong cash generation, as well as create potential upside through the combination of two leading global chemical companies,” says Jim Rogers, chairman and CEO of Eastman, in a company release. Under the terms of the agreement, Solutia stockholders will receive $22 in cash and 0.12 shares of Eastman common stock for each share of Solutia common stock. Based on recent closing prices, Solutia shareholders will receive cash and stock valued at $27.65 per Solutia common share, representing a premium of 42 percent and a total transaction value of approximately $4.7 billion, including the assumption of Solutia’s debt.

One night this week my husband and I were watching ESPN and he turned to me and asked, “What do you think is going to happen to Peyton?”

In the spirit of confident denial I simply said, “He’ll play.”

Well I’m getting nervous, folks (and dreading that I am wrong in front of my husband). I’m now crossing my fingers that we haven’t seen the last of my favorite athlete. You can only be in denial so long before the ugly truth forces you to face the music.

We certainly know a thing or two about change here in the window film industry. Only so many acquisitions can happen before it really sinks in that the industry is shrinking. Just last Friday we broke the news that Solutia had been acquired by Eastman. Another major window film manufacturer is being brought under another company’s wings. In 2011, we saw Solar Gard Specialty Films move to Saint-Gobain and we saw Solutia acquire Southwall Technologies. I wonder if the manufacturers’ acquisitions and mergers mean something to window film dealers. Does it concern you? Are you more concerned with increasing business in-house than what the film suppliers are doing?

 However, the wonderful part about our industry is that we have a product with a lot of value. While the industry may go through bouts of shrinking and growing, there is a demand for our product and the future certainly looks bright for energy conservation products. We are forever changing and adapting and that is one thing that I know I am not in denial about.

Share your thoughts on the recent acquisition by emailing me at komara@glass.com.

Officials at Eastman Chemical Co. of Kingsport, Tenn., and Solutia Inc. of St. Louis, have entered into a definitive agreement, under which Eastman will acquire Solutia. Under the terms of the agreement, Solutia stockholders will receive $22 in cash and 0.12 shares of Eastman common stock for each share of Solutia common stock.

“Solutia board of directors has agreed to a merger with Eastman Chemicals for an enterprise value of approximately $4.7 billion,” says Melissa H. Zona, director of corporate communications at Solutia. “Eastman’s offer represents a substantial premium for our shareholders. The agreement calls for the merger of the companies, which Solutia’s board of directors unanimously recommends be adopted by its shareholders.”

The merger creates a company with combined revenues of about $9.3 billion, Zona says. 

“The merger is financially compelling for Solutia’s shareholders, delivering immediate value and enabling investors to benefit over the long term from the combined company’s growth,” Zona adds. Solutia shareholders will receive cash and stock valued at $27.65 per Solutia common share, representing a premium of 42 percent and a total transaction value of approximately $4.7 billion, including the assumption of Solutia’s debt, she says.

“The acquisition of Solutia is a significant step in our growth strategy and one that I am confident will strengthen Eastman as a top-tier specialty chemical company with strong, stable margins,” says Jim Rogers, chairman and CEO of Eastman, in a company release. “The addition of Solutia will broaden our geographic reach into emerging geographies, particularly Asia Pacific, establish a powerful combined platform with extensive organic growth opportunities, and expand our portfolio of sustainable products, all of which are consistent with our growth strategy.

“This transaction is also expected to deliver immediate value to our stockholders in the form of accretion and strong cash generation, as well as create potential upside through the combination of two leading global chemical companies,” Rogers says in the release.

“This complementary transaction will accelerate the growth of our businesses around the world,” says Jeffry N. Quinn, chairman, president and CEO of Solutia, in the release. “This transaction provides Solutia’s shareholders with immediate value and an attractive premium, as well as the opportunity to benefit from the future prospects of a leading global chemicals producer with the financial strength, a diversified mix of premium products, and the geographic footprint to capitalize on long-term growth opportunities.”

In 1999 Solutia purchased CP Films.

Click here for more details.

“The Enpro Group has been successfully distributing Madico products for over 30 years and we have truly enjoyed this long-standing relationship,” says David Fletcher, president of Madico Window Films.  “After the purchase is completed, Madico Window Films will leverage its broad resources to build upon Enpro’s legacy of outstanding customer service, while The Enpro Group will focus its energy on its FirstCut program, retail services, contracting and other business segments.  We are confident that this purchase will be very positive for our window film customers, for Madico Window Films, and for The Enpro Group.  We are also pleased that our relationship will remain strong since we will continue to meet Enpro’s needs for window film products.”

The states affected by the purchase include Alabama, Arkansas, Colorado, Georgia, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina, Tennessee and Texas.

“Distribution has been the foundation of our business since our first day in operation,” says David Dickey, president of The Enpro Group. “This acquisition of assets is a testament to over 30 years of outstanding sales and marketing efforts, territory development and relationship-building strategies. Madico has been an excellent partner and we look forward to continuing our long, successful history with them.”

To read the full release, which is a part of the IWFA’s campaign to highlight the advantages of window film,  follow the link below.

It’s a “Glaring” Problem – Keep Solar Glare Under Wraps with Window Film, and Save Energy Year-Round

The license was awarded to Paul Hostage, a young entrepreneur who also owns a medical supply company and was interested in diversifying his business ventures in the custom automobile industry.

“I’m sure Paul’s extensive managerial experience with his medical supply company will support his success as a Tint World business owner, and I’m very excited about his passion for motorcycle styling he will be promoting in his new store,” says Tint World president Charles Bonfiglio. “Right now our stores deal mostly with automobiles, and we are eager to have Paul lead the charge to establish Tint World as the premier national franchise for motorcycle styling as well.”

In the spirit of the Better Building Initiative, 3M committed to reduce energy use by 25 percent in 78 of its plants, encompassing nearly 38 million square-feet of building space. In 2011, 3M has improved energy efficiency in its operations globally by 8.9 percent compared to 2010. The company also managed to save $43 million in energy costs and supported 150 employee-inspired energy projects that saved the company a total of $7.7 million.

“One of the things that we are planning to work on in the next couple of years is to provide more training to people who are leading our energy programs in our facilities,” says Steve Schultz, corporate energy manager for 3M. “We’ve done a lot to try to share information with our customers and suppliers.”

Some of the energy measures that 3M has taken to boost its efficiency include installing adjustable speed drives on motors that drive pumps within the facilities, improving the energy efficiency of air-handling systems, replacing lighting systems and utilizing waste-heat through heat recovery systems.

 “3M has cut its absolute worldwide greenhouse gas emissions by 72 percent from 1990 to 2010,” adds Tim Thornton, director of 3M Renewable Energy Division’s energy conservation business. “We are proud to take part in this challenge and to share our knowledge with others, so we can all move toward achieving this ambitious goal.”

Performance Films Distributing headquarters

There is much in store for 2012 at Performance Films Distributing. With the late 2011 announcement of the renewal of the company’s distributorship agreement with Solutia, 2012 is off to a strong start for the company.

“We are extremely happy that Solutia has renewed the agreement,” says Bo Ryan, vice president of Performance Films Distributing. “We are looking forward to progressing with Solutia and it puts our customers at ease to know there will be stability with the Solutia brand and with us as their distributor.”

Performance Films Distributing will continue to serve as the exclusive supplier of LLumar, Vista and Formula One window films in the Midwest through 2015.

“As the last independent distributor left, I believe Solutia is confident that we have and will continue to deliver value to our customers,” says Ryan.

Hinting at some possible surprises in 2012, Ryan adds that what they have in store for the new year includes a new approach to the window film market.

“Our focus is to provide our market with a new and fresh approach adding value to our customers and continue to serve our customers the best way possible. Our growth strategies for 2012 are all focused on understanding our customers’ needs and developing solutions to meet those needs,” says Ryan.

2007: This year I am going to lose weight!

2008: This year I am really going to lose weight!

2009: This year I am going to TRY to lose weight.

2010: I’m been trying to lose weight all year, but maybe saying it on New Year’s will make a difference.

2011: I’m getting married this year so I HAVE to lose weight.

2012: I can’t believe I didn’t lose all the weight I wanted to in 2011!!!! (I feel like a Cathy comic strip right now).

So this year I have decided that I am just going to do what I can manage. In other words set goals instead of resolutions this year. What a simple concept!

I find this translates to your professional life too. I’m sure we have all had moments where we have taken on too much, whether by choice or necessity, and we inevitably drop the ball or miss something important. It’s all about moderation (tell that to my taste buds) and delegation (see the upcoming Jan-Feb issue and read Donna Wells’ thoughts on staffing). Maybe you have a thousand ideas that you want to implement in 2012 and five days into the New Year you are already wondering if it will be possible. Prioritize your goals and focus on what is most important to you.

I think the other key to these New Year’s “goals” is to not be too hard on yourself (yes, I am preaching to myself too). Be realistic with your expectations for your business. Is it really feasible for your company to expand in 2012? Do you have the staff to take on more business? If you don’t meet all of your goals by the end of December then re-adjust your goals for 2013. Resolutions shouldn’t break you down. So, what goals have you made for 2012?

Now I will get off my soapbox and put my gym shorts on. Nice to see you, 2012.