Clariant, Huntsman merger create speciality chemicals giant

Clariant, Huntsman merger to create speciality chemicals giant

12:07 PM, 22nd May 2017
Clariant, Huntsman merger to create speciality chemicals giant
Peter Huntsman, current Huntsman president and CEO (right) shaking hands with Hariolf Kottmann, current CEO of Clariant.

MUTTENZ, SWITZERLAND: Clariant (CLN) and Huntsman Corporation (HUN) said that they have approved a definitive agreement to combine in a merger of equals through an all-stock transaction.

The merged company will be named HuntsmanClariant.  The combined entity will benefit from each other’s strengths. It will have a significantly improved growth profile in highly attractive end markets and geographies. HuntsmanClariant will leverage shared knowledge in sustainability and boast a much stronger joint innovation platform. This will enable the development of new products in order to deliver superior returns and drive shareholder value.

The new company will accelerate value creation for shareholders through a more robust combination of technology, products and talent. The combined company expects to realise more than $3.5 billion of value creation from approximately $400 million in annual cost synergies. The full synergy run-rate will be achieved within two years of closing. These synergies will be realised by reducing operational costs and improving procurement. The targeted synergies represent roughly 3 percent of the total combined 2016 revenue with one-time costs up to $500 million. There will also be additional cash tax savings.

Hariolf Kottmann, the current Clariant CEO, shall become chairman of the board of HuntsmanClariant. Peter Huntsman, current Huntsman president and CEO, will become CEO of HuntsmanClariant.

Jon Huntsman, founder and chairman of Huntsman, shall become chairman Emeritus and board member of HuntsmanClariant.

The company will be listed on the SIX Swiss Exchange and the New York Stock Exchange. The transaction is targeted to close by year end 2017.

“This is the perfect deal at the right time. Clariant and Huntsman are joining forces to gain much broader global reach, create more sustained innovation power and achieve new growth opportunities. This is in the best interest of all of our stakeholders. Peter Huntsman and I share the same strategic vision and I look forward to working with him,” said Hariolf Kottmann.

“I could not be more enthusiastic about this merger and look forward to working closely with Hariolf Kottmann, a man I have admired and trusted for the past decade. We also look forward to a close association with his immensely talented colleagues around the world. Together, we will create a global leader in speciality chemicals with a combined balance sheet providing substantial financial strength and flexibility,” added Peter Huntsman.

Citi and UBS AG are serving as Clariant’s financial advisors for the transaction, with Homburger and Cleary Gottlieb Steen & Hamilton serving as its legal advisors.

BofA Merrill Lynch and Moelis & Company LLC are serving as Huntsman’s financial advisors for the transaction, with Kirkland & Ellis, Bar & Karrer and Vinson & Elkins acting as its legal advisors.

© Worldofchemicals News 



Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News

ExxonMobil, Sabic conducts study for proposed US petrochemical project

RIYADH, Saudi Arabia: Affiliates of ExxonMobil Corporation (XOM) and Sabic has signed an agreement to conduct a detailed study of the proposed Gu ...

Read more
Dow inks deals for coatings, silicones investments in Saudi Arabia

MIDLAND, US: The Dow Chemical Company (DOW) has signed two agreements to advance the company’s strategic, innovation agenda in the Kingdom of Sa ...

Read more
PPG, Vision Systems to develop aircraft window shading solutions

SYLMAR, US/ BRIGNAIS, FRANCE: PPG Industries Inc (PPG) and Vision Systems have reached a commercial agreement to develop new applications utilising Vi ...

Read more
IMCD to acquire speciality chemicals business of Bossco

ROTTERDAM, THE NETHERLANDS: IMCD NV has signed an agreement to acquire the speciality chemicals distribution business of Bossco Industries Inc. Bossc ...

Read more
Lubrizol appoints new CSO; makes leadership changes

CLEVELAND, US: The Lubrizol Corporation announced the following changes to its senior leadership team, all effective on 1 June 2017. Bob Graf, curren ...

Read more
Reichhold, Polynt completes merger; creates leader in speciality chemicals

GREENWICH, US: Reichhold Group and Polynt Group have completed the merger announced last year. The new Polynt-Reichhold (group) is a global compa ...

Read more uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X