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.
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 Oils 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 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.”
BP’s involvement in the global aviation fuels business, through Air BP, is not impacted by this sale.
The Aviation Turbine Oils business, which has its head office in Wayne, New Jersey, serves customers in over 90 countries. It directly employs 47 people worldwide, the majority of whom are based in the US and all are expected to transfer to the new owners as part of the sale.
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This press release contains certain forecasts, projections and other forward-looking statements regarding BP’s plans to sell its Aviation Turbine Oils business, including regarding: the expected timing of completion of the disposal; BP’s plans to support the transition of the Aviation Turbine Oils business; and BP’s plans for its lubricants business in the future. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that will or may occur in the future. Actual results may differ from those expressed in such statements, depending on a variety of factors including the timing and receipt of regulatory and other approvals; the timing of deal completion; the actions taken by the purchasing entity and others; future investment decisions made by BP’s global lubricants business; changes in public expectations and other changes to business conditions; future levels of industry product supply; demand and pricing; economic and financial conditions generally or in various countries and regions; political stability and economic growth in relevant areas of the world; changes in laws and governmental regulations; regulatory or legal actions; the effectiveness and security of our digital infrastructure; the actions of competitors, trading partners, creditors, rating agencies and others; natural disasters and adverse weather conditions; wars and acts of terrorism, cyber-attacks or sabotage; and other factors discussed under " Principal risks and uncertainties " in our Stock Exchange Announcement for the period ended 30 June 2013 and under " Risk factors " in our Annual Report and Form 20-F 2012 as filed with the US Securities and Exchange Commission.