UPDATE 2-Mexico’s Alfa buying three Eastman Chemical plants

* Eastman selling PTA, PET plants to Alfa

* Alfa will strengthen its plastic products line

* Alfa will tap debt market to fund deal
(Recasts 1st paragraph; adds background, details on loan,
comments from company; updates stock price)

MEXICO CITY, Oct 25 (BestGrowthStock) – Mexican conglomerate Alfa
is buying three plants from Eastman Chemical Co for $600
million, boosting its presence in the U.S. plastics market.

Monterrey-based Alfa (ALFAA.MX: ) will tap debt markets with
a three-year credit to help fund the acquisition, the company’s
head of communications, Enrique Flores, told Reuters.

Alfa’s DAK Americas unit is expected to close on the
transaction before year-end.

One of the Eastman (EMN.N: ) plants being acquired by Alfa
produces PTA, a chemical used in the production of plastics.
The other two make PET, a polymer used in beverage, food and
other liquid containers.

The plants are located in South Carolina and have an annual
production capacity of 1.275 million tonnes. Alfa estimated the
facilities had sales of close to $405 million during the first
half of the year.

“Most of these PET products are used in the making of
plastic bottles, beverage bottles, beauty product containers,”
Flores said.

Shares of Alfa, which has wide-ranging interests from food
production to auto parts and chemicals, rose 0.34 percent to
98.31 pesos on Mexico’s IPC index (.MXX: ).

Shares of Eastman, which said it expects to recognize a
modest gain from the sale, gained 4.65 percent to $82.26 in New
York.

Last week Alfa reported that third-quarter net profit of
774 million pesos ($61 million), up 2.4 percent from 756
million pesos in the same quarter of 2009. [nN19146091]
(Reporting by Cyntia Barrera Diaz; editing by Dave Zimmerman
and John Wallace)

UPDATE 2-Mexico’s Alfa buying three Eastman Chemical plants