U.S.-based Huntsman Corp. announced that it has agreed to sell its chemical intermediates and surfactants businesses, which make ingredients for lubricants and cleaning products, to Thailand’s Indorama Ventures PCL for more than USD 2.08 billion.
The sale, which is expected to close by the end of the year, will include manufacturing facilities in parts of Texas, in the United States, India, and Australia.
With headquarters in The Woodlands, Texas, and executive offices in Salt Lake City, Utah, Huntsman Corp. operates more than 75 manufacturing, R&D and operations facilities in more than 30 countries and employs 10,000 people across four business divisions. Huntsman Corp. had 2018 revenues of more than USD9 billion. The company said it intends to speed up its share repurchase program under its existing USD1 billion multi-year authorization after the deal with Indorama closes.
The value of the agreement with Indorama Ventures includes USD2 billion in cash and up to about USD76 million of net underfunded pension and other post-employment benefit liabilities. The company was advised by Bank of America Merrill Lynch and Kirkland & Ellis LLP.
Group Chief Executive Peter Huntsman said that the deal “further transforms Huntsman’s balance sheet and future,” and was in line with its strategy of focusing more on its downstream and specialty businesses.
Indorama Ventures, which is part of Singapore-based Indorama Corp., manufactures a range of petrochemical products, including PET, packaging, fibers, and recycled products. Along with its affiliate Indorama Ventures, Indorama Corp. operates more than 70 manufacturing sites in about 30 countries and employs more than 30,000 people worldwide. Indorama Ventures is the largest producer of polyester products in the world with plants in five continents and is also one of the biggest producers of polyester feedstocks.
According to Aloke Lohia, group chief executive of Indorama Ventures, “This acquisition is a momentous propellant in our journey towards our stated goal of being a global, diversified chemicals company with multiple, and related earnings streams.”