Eastman Chemical Co. agreed to acquire Taminco Corp., a producer of chemicals for water treatment and agriculture, for about $1.8 billion in cash.

Taminco shareholders will receive $26 a share, Kingsport, Tennessee-based Eastman said today in a statement. The transaction value is $2.8 billion including assumption of $1 billion of Taminco’s debt, Eastman said.

The transaction was also approved by Apollo Global Management LLC, the majority owner of Taminco, the Allentown, Pennsylvania-based company said in a separate statement.

Taminco is the world’s largest integrated producer of alkylamines and alkylamine derivatives. Tamincoblends ammonia with alcohol to make amines that can be reacted with other chemicals to make pharmaceuticals, foods, crop chemicals and solvents

Taminco rose 11 percent to $26.51 at 10:50 a.m. in New York.

Eastman’s financial adviser is Citigroup Inc. and Jones Day is acting as legal counsel. Kirkland & Ellis LLP acted as legal adviser to Taminco and Morgan Stanley acted as financial adviser.

Subscribe Now

Complete access to real-time information and analysis of news and trends in the industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.