NEW YORK—Eastman Chemical Co. is selling its tire additives business to a private equity firm for up to $800 million.
One Rock Capital Partners L.L.C. has a new deal to acquire the segment for an initial payment of $725 million from Kingsport, Tenn.-based Eastman.
One Rock also could pay Eastman up to another $75 million through 2023 based on performance of the acquired operations.
Eastman is divesting the tire additives business as part of what the company describes as an ongoing effort to improve its Additives & Functional Products segment.
"After reviewing strategic options, we believe this action is the most beneficial to Eastman and the rubber additives business," Eastman CEO Mark Costa said in a statement. "We continue to evaluate other actions to improve our AFP segment."
The tire additives segment makes insoluble sulfur, antidegradants and post-vulcanization stabilizers for the tire market.
Included in the deal are seven plants, two technology centers and more than 500 employees, Eastman said.
Tony Lee, managing partner at One Rock, called the tire additives business a "global leader known for high-performance, mission-critical products and technical leadership."
New York-based One Rock recently made news with its $4.3 billion purchase of Nestle Waters North America, including the well-known brands such as Arrowhead, Poland Springs, Deer Park, Ice Mountain and Splash.
The Eastman sale to One Rock includes the Crystex brand of insoluble sulfur, the Impera brand of performance resins, the Santoflex brand of antidegradants, and the Duralink HTS post-vulcanization stabilizer.