THE
WOODLANDS, Texas, Aug. 9, 2022
/PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced it
has entered into a definitive agreement to sell its Textile Effects
division to Archroma, a portfolio company of SK Capital
Partners. The total enterprise value of the transaction is
approximately $718 million, which
includes the assumption of approximately $125 million in net underfunded pension
liabilities as of December 31, 2021.
The acquisition is being partially funded with preferred equity, of
which Huntsman is taking up to $80
million, an amount SK Capital Partners will seek to
syndicate prior to the transaction closing.
Over the last twelve months ending June
30, 2022, the Textile Effects division reported sales of
$772 million and adjusted EBITDA of
$94 million. Huntsman anticipates
cash taxes on the transaction of approximately $50 million. Huntsman intends to report Textile
Effects as discontinued operations beginning in the third quarter
of 2022. The transaction is subject to regulatory approvals and
other customary closing conditions and is expected to close in the
first half of 2023.
Peter Huntsman, Chairman,
President, and CEO commented:
"Over the past seven months, we have conducted a
comprehensive strategic review of our Textile Effects division,
including detailed discussions with a wide range of relevant
parties. After evaluating several different options and thoroughly
reviewing prospective offers for the business, our Board of
Directors decided that SK Capital would be a better owner of the
business over the long-term than Huntsman and that the value they
offered was in the best interests of our shareholders. After
closing, Textile Effects will combine with SK Capital's Archroma
business to create a world leader in textile chemicals and dyes,
with a leadership in sustainability and innovation.
"We expect the cash proceeds from this divestiture to be
deployed in-line with our current balanced capital allocation
program which includes strategic investments and acquisitions to
further strengthen our core businesses as well as returning cash to
shareholders through both our dividend and share repurchase
program."
BofA Securities is serving as Huntsman's financial advisor and
Kirkland & Ellis LLP is acting as its legal advisor.
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer
and marketer of differentiated and specialty chemicals with 2021
revenues of approximately $8
billion. Our chemical products number in the thousands and
are sold worldwide to manufacturers serving a broad and diverse
range of consumer and industrial end markets. We operate more
than 70 manufacturing, R&D and operations facilities in
approximately 30 countries and employ approximately 9,000
associates within our four distinct business divisions. For more
information about Huntsman, please visit the company's website
at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange
Act of 1934. These statements are based on management's current
beliefs and expectations. The forward-looking statements in this
release are subject to uncertainty and changes in circumstances and
involve risks and uncertainties that may affect the company's
operations, markets, products, services, prices and other factors
as discussed under the caption "Risk Factors" in the Huntsman
companies' filings with the U.S. Securities and Exchange
Commission. Significant risks and uncertainties may relate to, but
are not limited to, volatile global economic conditions, cyclical
and volatile product markets, disruptions in production at
manufacturing facilities, reorganization or restructuring of
Huntsman's operations, including any delay of, or other negative
developments affecting the ability to implement cost reductions,
timing of proposed transactions, and manufacturing optimization
improvements in Huntsman businesses and realize anticipated cost
savings, and other financial, economic, competitive, environmental,
political, legal, regulatory and technological factors. The company
assumes no obligation to provide revisions to any forward-looking
statements should circumstances change, except as otherwise
required by applicable laws.
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SOURCE Huntsman Corporation