Huntsman sold its chemical intermediates and surfactant business for $2.1 billion

August 7, 2019 - Huntsman announces a final agreement. Under the agreement, Huntsman sold its chemical intermediates business, including PO/MTBE and its surfactant business, to Indorama Ventures in a deal valued at $2,076 million. This includes $2 billion in market capitalization and up to about $76 million in net underfunded pensions and other after-

. The transaction value of $2,076 million was approximately eight times the adjusted EBITD multiply for the previous 12 months, including retained sales costs, general expenses and administrative expenses of approximately $30 million. Some of these Huntsmans are expected to phase out. Under the terms of the agreement, Indorama Ventures will acquire the Huntsman plant in Texas's Ness Harbor, Daidding Shield, Chocolate Bay, Anchorishwar, India, and Botany, Australia. The deal is subject to regulatory approval and other customary terms and is expected to close by the end of the year.
, chairman, president and chief executive of the Company, commented: "This transaction has further changed Huntsman's balance sheet and future. It accelerates our downstream expansion and complements our portfolio. This is another milestone in our strategy to focus more on downstream and specialty chemicals businesses that can generate longer-term stable profits and strong free cash flow for us. We are committed to maintaining a strong investment-grade balance sheet, buying back our shares, investing in sound development, selectively expanding capacity, accelerating the acquisition of our shares and strategic assets that create value for our shareholders. For
Ventures, they will trade for a strong EO/PO derivatives business, as well as an experienced workforce and management team. It's also an opportunity for them to transform. This has added hundreds of product grades and thousands of customers to their portfolio. Huntsman looks forward to continuing to work with Indorama Ventures on long-term commercial projects, including epoxy propane supply, through customer and manufacturing partners.
, chief executive of Indorama Ventures, commented: "Following the completion of this transaction, Huntsman plans to accelerate share buybacks under its existing multi-year multi-year mandate of $1 billion. This acquisition is an important driving force for us to achieve our goals. Our goal is to become a global, diversified chemical company with multiple relevant revenue streams. The
acquisition was made by BofA Merrill Lynch as Hensmey's financial advisor and Kirkland and Ellis LLP as its legal adviser.