Huntsman sell its European surfactants biz in $225 mn deal

Huntsman to sell its European surfactants biz in $225 mn deal

4:44 AM, 4th August 2016
Huntsman to sell its European surfactants biz in $225 mn deal

THE WOODLANDS, US: Huntsman Corporation said that it has agreed to sell its European surfactants business to Innospec Inc for $225 million. Under the terms of the planned transaction, Innospec would acquire Huntsman's manufacturing facilities located in Saint-Mihiel, France; Castiglione Delle Stiviere, Italy; and Barcelona, Spain.

As part of the $225 million enterprise value, Huntsman would retain its related accounts receivables and trade payables. The business represents approximately $24 million of EBITDA. Closing is expected to occur by the end of the fourth quarter of 2016.

Net proceeds of the sale would be used to repay debt. This debt repayment would be in addition to Huntsman's recent $100 million debt reduction that occurred on 22 July, and the proceeds would also be in addition to Huntsman's stated objective of generating more than $350 million of free cash flow in 2016.

Huntsman remains committed to its global surfactants business, including in the US and Australia, where its differentiated surfactants businesses are backward integrated into essential feedstocks. Huntsman plans to retain certain core products strategic to its global agrochemicals lubes and certain other businesses. Upon consummating the planned transaction, Huntsman would enter into supply and long-term tolling arrangements with Innospec in order to continue marketing certain of these products.

"This proposed transaction is consistent with our strategic financial objectives of increasing our cash flow generation, growing our downstream differentiated businesses and separating our titanium dioxide business. The decoupling of our European surfactants business would allow us to concentrate our focus and grow businesses within our portfolio with greater long-term strategic fit. Additional reshaping of Huntsman will occur soon, as we are actively working towards a spin-off of our titanium dioxide, additives and textile effects businesses," said Peter Huntsman, president and CEO of Huntsman.

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Read the latest news from Huntsman:

Huntsman to close titanium dioxide facility in South Africa



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