KINGSPORT, Tenn. - Eastman Chemical Company has entered into a definitive agreement with Viceroy Acquisition Corp. for the sale of its Arkansas-based wholly owned subsidiary, Eastman SE, Inc., which includes Eastman's Batesville, Ark., manufacturing facility and its related assets and product lines. The sale is for a purchase price of $75 million at closing. Subject to regulatory approval and customary conditions, the sale is expected to close in fourth quarter 2006.

Eastman SE manufactures specialty organic chemical products for the company's performance chemicals and intermediates segment, which is part of the chemicals and fibers business group.