Eastman Splits Businesses, Acquires Hercules

Eastman Splits Businesses, Acquires Hercules

KINSGSPORT, Tenn.--Eastman Chemical announced in early Februarythat it plans to split its business into two publicly traded companies by theend of 2001, dividing its specialty chemicals division from its plasticpackaging operation. It has also announced that it has agreed to purchaseHercules Inc.; terms were not disclosed, but Hercules had revenues of $300million in 2000.

"Our rationale for these launches is growth," said EarnestDeavenport Jr., chairman and chief executive officer (CEO). Deavenport willretire as chairman once the spinoff is complete. J. Brian Ferguson, who had beenpresident of Eastman's Polymers Group, will be CEO of the Specialty Plasticscompany, while Allan Rothwell, president of the Chemicals Group, will be CEO ofthe PET Plastics and acetate fibers company. For more details, visit www.eastman.com.