Huntsman sells chemical intermediates and surfactants for nearly $2.1 billion

Huntsman announced a final agreement. In the agreement, Huntsman sold its chemical intermediates business (including PO/MTBE and its surfactant business) to Indorama Ventures for $2.076 billion. This includes a market value of $2 billion and a net underfunded pension and other after-service welfare liabilities of about $76 million. The transaction volume of $2.076 billion is about eight times the pre-profit multiples of the adjusted interest and tax amortization in the first 12 months, including about $30 million in retained sales costs, overhead and administrative costs. Some of them are expected to be phased out. Under the terms of the agreement, Indorama Ventures will acquire the Huntsman plant in Port Nerches, Texas, Dai Shin, Chocolate Bay, Anchor Reshwar, India, and Botany, Australia. The transaction is subject to regulatory approval and other customary terms and is expected to be completed by the end of the year.

Peter Huntsman, chairman, president and CEO, commented: "The deal has further changed Huntsman's balance sheet and future. It accelerates our downstream expansion and is a complement to our product portfolio. This is another milestone in our strategy, which focuses more on downstream and special chemicals businesses that can create longer-term stable profits and strong free cash flow for us. We are committed to maintaining a strong investment-grade balance sheet, repurchasing our shares, benign development of investment research, selective expansion of capacity, accelerating the acquisition of our shares and strategic assets that can create value for shareholders. For Indorama Ventures, they will acquire a strong EO/PO derivatives business, as well as an experienced labor and management team through trading. For them, this is also an opportunity for transformation. This adds hundreds of product classes and thousands of customers. Huntsman looks forward to continuing to work with Indorama Ventures on long-term commercial projects, including propylene oxide supply, in a customer and manufacturing partnership.

Aloke Lohia, CEO of Indorama Ventures Group, commented: "After the deal is completed, Huntsman plans to accelerate stock repurchase under its existing multi-year authorization of $1 billion. This acquisition is an important driving force for us to achieve our stated goals. Our goal is to become a global, diversified chemical company with multiple related revenue sources.

The acquisition was carried out by Bof AMerrill Lynch as Hensman's financial adviser and Kirkland & Ellis LLP as his legal adviser.