Huntsman sells its chemical intermediates and surfactants businesses
Huntsman Corporation announced it has entered into a definitive agreement to sell its chemical intermediates businesses, which includes PO/MTBE, and its surfactants businesses to Indorama Ventures in a transaction valued at 1.87 billion Euro, comprising a cash purchase price of 1.8 billion Euro plus the transfer of up to approximately 70 million Euro in net underfunded pension and other post-employment benefit liabilities. The 1.87 billion Euro transaction value represents an LTM adjusted EBITDA multiple of approximately 8.0 times, which includes retained SG&A costs of about 27 million Euro, a portion of which Huntsman expects to eliminate over time.
Acquisition of several production sites
Under the terms of the agreement, Indorama Ventures would acquire Huntsman’s manufacturing facilities located in Port Neches, Texas; Dayton, Texas; Chocolate Bayou, Texas; Ankleshwar, India; and Botany, Australia. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close near year-end.