THE WOODLANDS, Texas,
Oct. 28, 2020 /PRNewswire/ --
Huntsman Corporation (NYSE: HUN) announced today that it has
entered into a definitive agreement to sell its India based Do-It-Yourself (DIY) consumer
adhesives business, part of the Advanced Materials division, to
Pidilite Industries Ltd. in an all-cash transaction valued at up to
$285 million, excluding customary
working capital and other adjustments. The transaction value
represents a 2019 adjusted EBITDA multiple of approximately 15
times. Under the terms of the agreement Huntsman will receive
approximately $257 million in cash at
closing and up to approximately $28
million of additional cash under an earnout within 18 months
if the business achieves sales revenue in-line with 2019. The
transaction is expected to close within the coming
week.
Peter Huntsman, Chairman,
President and CEO commented:
"We have taken this business and built it from almost nothing
to be a market leader in India. To take it to the next level
of size and value, we simply do not have the footprint in
India to do so. Pidilite is
a respected leader in consumer adhesives within India and is in a better position to invest in
and more aggressively grow this consumer DIY business over the
coming years. We anticipate within the coming months that we
will be able to deploy the proceeds from this asset and replace the
lost EBITDA with other growth assets that fit even better within
our core Advanced Materials specialty business."
About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer
and marketer of differentiated and specialty chemicals with 2019
revenues of approximately $7
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 70 manufacturing, R&D and operations facilities in
approximately 30 countries and employ approximately 9,000
associates within our four distinct business divisions. For more
information about Huntsman, please visit the company's website
at www.huntsman.com.
Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman
Forward-Looking Statements:
Certain information in this release constitutes forward-looking
statements within the meaning of Section 27A of the Securities Act
of 1933 and Section 21E of the Securities Exchange Act of 1934.
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
under the caption "Risk Factors" 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, volatile
global economic conditions, cyclical and volatile product markets,
disruptions in production at manufacturing facilities,
reorganization or restructuring of Huntsman's operations, including
any delay of, or other negative developments affecting the ability
to implement cost reductions, timing of proposed transactions, and
manufacturing optimization improvements in Huntsman businesses and
realize anticipated cost savings, and other 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