Eastman Chemical Co. announced the planned acquisition of the Virginia business, Commonwealth Laminating & Coating Inc., which is a manufacturer of window and specialty films. Eastman is located in Tennessee and employs more than 1,500 people in Longview.
Eastman will be acquiring Commonwealth's manufacturing plant and master distribution center. The deal also includes nine additional centers that provide architectural, automotive and protective products to customers across the globe. An Eastman spokesperson stated that the objective is to expand the global offerings of performance films for solar control window film and other protective films. The president of Commonwealth expressed support for the trade, citing Eastman's respect for his company's products and infrastructure. He also suggested that both his employees and his customers would benefit from the acquisition.
The terms were not released, and the deal, which requires regulatory approval, is expected to be finalized later this year. Eastman expects the deal will add to its revenue a year after the deal is complete, excluding the costs associated with the acquisition.
As in this case, acquisitions or mergers between two companies working in similar or related fields may be beneficial to both parties. When two companies recognize the advantage of combined effort, they may seek legal guidance that might make the deal go more smoothly. An attorney who has experience with commercial transactions and business acquisitions may be able to help two firms negotiate a deal that is equitable to both parties. That attorney might be able to review all the necessary documents and represent a client's interests throughout the proceedings.
Source: News Journal, "Eastman to acquire Virginia-based films manufacturer", March 14, 2014