THE WOODLANDS, Texas,
Aug. 3, 2016 /PRNewswire/
-- Huntsman Corporation (NYSE: HUN) today announced that
Innospec Inc. (NASDAQ: IOSP) has committed to purchase Huntsman's
European surfactants business. 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, and is subject to customary conditions, including the
representative bodies consultation processes where required by
applicable law. 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 July 22, 2016, 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 United States 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.
In 2014, Huntsman sold its European commodity surfactants
business. The planned transaction with Innospec represents another
step in Huntsman's strategic transformation of its Performance
Products business. This business is currently expanding its
downstream positioning with a polyetheramines expansion in
Singapore, as well as undertaking
a substantial cost savings and business improvement initiative.
Peter R. Huntsman, President and
CEO of Huntsman Corporation, commented:
"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. We plan to use the proceeds from
this sale to repay our debt and strengthen our balance sheet.
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."
About Huntsman:
Huntsman Corporation is a publicly
traded global manufacturer and marketer of differentiated chemicals
with 2015 revenues of more than $10
billion. Our chemical products number in the thousands and
are sold worldwide to manufacturers serving a broad and diverse
range of consumer and industrial end markets. We operate more than
100 manufacturing and R&D facilities in approximately 30
countries and employ approximately 15,000 associates within our 5
distinct business divisions. For more information about Huntsman,
please visit the company's website at
www.huntsman.com.
Social Media:
Twitter:
twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Statements in this
release that are not historical are forward-looking statements.
These statements are based on management's current beliefs and
expectations. The forward-looking statements in this release are
subject to uncertainty and changes in circumstances and involve
risks and uncertainties that may affect the company's operations,
markets, products, services, prices and other factors as discussed
in the Huntsman companies' filings with the U.S. Securities and
Exchange Commission. Significant risks and uncertainties may relate
to, but are not limited to, financial, economic, competitive,
environmental, political, legal, regulatory and technological
factors. The company assumes no obligation to provide
revisions to any forward-looking statements should circumstances
change, except as otherwise required by applicable laws.
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SOURCE Huntsman Corporation