Eastman ponders sale of PET business

After poor financial showings lately, Eastman Chemical Co. is considering the possible sale of its PET business in its performance polymers segment.

In an April 22 news release, Kingsport, Tenn.-based Eastman announced first-quarter financial results that revealed the performance polymers unit recorded an operating loss of US$13 million in the first three months of the year, “negatively impacted by continued difficult market conditions for PET in North America.” Performance polymers was the only one of Eastman’s segments to show an operating loss, as the company’s overall sales grew by 18 per cent. In a news release dated the next day, April 23, the company announced the possibility of the sale. 

In addition to outright sale of the unit, Eastman said it is also reviewing other “strategic options” and has hired Bank of America Merrill Lynch as its financial advisor.