Release date: 28 January 2014
BP has announced it has agreed to sell its specialist global Aviation Turbine Oils business to Eastman Chemical Company for an undisclosed sum. The deal which is subject to regulatory and other approvals is expected to be completed in the second quarter of 2014.
The sale includes BP’s aviation turbine oil manufacturing, blending and packaging assets in Linden New Jersey, laboratory equipment, product formulations and customer contracts covering a global business portfolio including many of the world’s commercial airlines.
BP’s involvement in the global aviation fuels business, through Air BP, is not impacted by this transaction.
Eastman is one of the largest US chemical producers and has been a supplier of lubricants to the aviation industry since 2012, when it integrated the Skydrol range of aviation hydraulic fluids into its portfolio. Eastman is well positioned to continue BP’s long running track record of manufacturing high quality specialist aeroderived turbine oils and supplying a global customer portfolio through synergies with the hydraulic fluids consumers.
BP’s decision to sell the business followed a review of the company’s lubricants portfolio. It decided that the Aviation Turbine Oil business would offer more opportunities for other companies wanting to invest in the sector.
Iain Conn, BP’s chief executive for refining and marketing, said: “We believe that Eastman will be able to build on these excellent assets and market positions to grow the business further in the best interests of both customers and those working in the business. BP will support the transition so that customers can continue to enjoy the best products and services in the industry. The divestment will enable BP’s lubricants business to focus on investments in other industry sectors. Our intent is to grow the lubricants business globally.”
The business, which has its head office in Wayne, New Jersey, serves customers in over 90 countries. It directly employs 48 people worldwide, the majority of whom are based in the US and are expected to transfer to the new owners as part of the sale.