Indorama acquire Huntsman’s integrated oxides & derivative biz $2 bn

Indorama acquires Huntsman’s integrated oxides & derivative biz for $2 bn

4:28 AM, 8th August 2019
Indorama logo

BANGKOK, THAILAND: Indorama Ventures PCL has entered into a deal to acquire Huntsman’s world-class integrated oxides and derivative businesses, for an enterprise value of $2.0 billion.

Huntsman is a global leader in integrated Oxides (EOs) and Derivatives (EOD), operating a large, well-invested site in US Gulf Coast (USGC) as well as in India and Australia.

This acquisition reinforces Indorama’s Integrated EOs and Specialty Chemical segment’s growth trajectory and includes sought after value-added EODs and Propylene Oxide Derivatives

The transaction will broaden Indorama’s expertise of operating USGC Integrated Oxides facilities through operational excellence, global scale, differentiated formulations and technologies

It is a game changing acquisition for IVL, its largest ever and one of the biggest by a Thai company in the last decade

The transaction is expected to be completed by 4Q 2019.

“This acquisition is a momentous propellant in our journey towards our stated goal of being a global, diversified chemicals company with multiple, and related earning streams. The combination of our two integrated EO assets, primarily used in captive production of EO & PO derivatives, will boost our earning streams with higher margin applications in daily necessities and strengthen our position with existing and new customers. We are thrilled to welcome our new colleagues and their added competencies which empowers our collective potential to grow continually. I am confident that this important business will drive value for all our stakeholders and underpin IVL’s earnings growth opportunities for years to come,” said Aloke Lohia, Group CEO of Indorama Ventures.

“For Indorama Ventures, they will be acquiring a strong EO/PO derivatives business with a very experienced workforce and management team. This is also a transformational opportunity for Indorama Ventures that provides them hundreds of product grades and thousands of customers. Huntsman looks forward to continuing to work with Indorama Ventures as a customer and manufacturing partner through long-term commercial arrangements, including propylene oxide supply. Our Company looks forward to further developing a long-term relationship with IVL. I not only value this relationship, but the personal trust and friendship I have developed with Mr. Aloke Lohia,” added Peter Huntsman, Chairman, President and CEO, Huntsman Group.

The Valence Group acted as exclusive financial adviser to Indorama Ventures. Legal advice was provided by Lowenstein Sandler LLP and KPMG provided financial due diligence support.

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