Eastman Chemical Company has entered into a definitive agreement to acquire Industrias del Acetato de Celulosa S.A. (INACSA), a Spanish producer of cellulosic yarn.
Eastman said Wednesday that the INACSA yarn business and assets are expected to support continued growth of its Naia cellulosic yarn for the apparel market and will become part of the company’s global fibers segment supply base.
“With the acquisition of INACSA, Eastman gains a well-respected yarn producer and a European site that will enhance our ability to support the global textiles supply chain,” Brad Lich, executive vice president and chief commercial officer of Eastman, said. “We look forward to welcoming the INACSA employees to the Eastman team.”
Eastman will acquire the entire yarn business and assets from INACSA, including the plant and assets in La Batllòria, Spain, formulations and intellectual property, and customer contracts. The acquisition, subject to receipt of required regulatory approvals and satisfaction of other customary closing conditions, is expected to be completed in the third quarter. Terms of the transaction were not disclosed.
“This bolt-on acquisition is consistent with the company’s growth strategy and objective of delivering superior value through disciplined and balanced uses of cash for dividend payments, debt repayment, share repurchases, and organic and inorganic growth initiatives,” Lich added.
Launched in 2017 for the intimate apparel market, Naia is made from bio-based wood pulp and has inherent luster and a silky hand. The yarn is produced in a closed-loop production process where safe solvents and water are recycled and reused. Last year, Eastman moved Naia into the women’s ready-to-wear and sportswear market with fresh brand marketing.
Headquartered in Kingsport, Tenn., Eastman is a global specialty materials company that produces a broad range of products, which in addition to fibers includes transportation, building and construction, and consumables. Eastman had 2018 revenues of approximately $10 billion.