Huntsman Corporation has agreed to sell its chemical intermediates businesses, including PO/MTBE, and its surfactants businesses to Indorama Ventures Ltd. in a transaction valued at $2.076 billion. The deal is comprised of a cash purchase price of $2.0 billion plus the transfer of up to approximately $76 million in net underfunded pension and other post-employment benefit liabilities. 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.
According to Peter Huntsman, chairman, president and CEO of Huntsman Corporation, the transaction accelerates the company’s ability to expand in areas both downstream and complementary to its portfolio and where it can generate more stable margins and consistent free cash flow.
According to Aloke Lohia, group CEO of Indorama Ventures, “This acquisition is a momentous propellant in our journey towards our stated goal of being a global, diversified chemicals company with multiple, and related earnings streams.”
An on-demand webcast is available with more details on Huntsman’s decision to sell its chemical intermediates and surfactants businesses. To view this webcast, click here.