Huntsman to Sell Textile Dyeing Unit for $718 Million

On August 9, Huntsman, a U.S. specialty chemical manufacturer, announced that it had reached a definitive agreement to sell its textile dyeing and chemical division to Archroma, a subsidiary of SK Capital Partners, for a total enterprise value of approximately $718 million.

For the trailing 12 months ended June 30, 2022, Textile Effects reported sales of $772 million and adjusted EBITDA of $94 million.

The transaction is expected to close in the first half of 2023. Upon completion, the Textile Dyeing and Chemicals division will combine with the Archroma business of SK Capital to create a world-leading textile chemicals and dyestuff company.

Huntsman said that over the past seven months, it had conducted a comprehensive strategic discussion of the Textile Dyeing and Chemicals business unit. After evaluating several different options and thoroughly reviewing a potential takeover offer, the board of directors believes that SK Capital is more than Huntsman is better suited to be an owner of a business that provides value that is in the best interests of shareholders.

Swiss Archroma, originated from Clariant, is a color and specialty chemicals company. In 2013, SK Capital Partners of the United States acquired Clariant's textile, paper, and emulsion divisions to form a new company, Archroma. At present, Archroma has three business divisions, namely: Brand and High Performance Textile Specialty Chemicals, Packaging and Paper Specialty Chemicals, and Coatings, Adhesives and Sealants Division, with 2,800 employees in 25 production bases in 31 countries Staff.

The Huntsman Group is a multinational corporation focused on the production and sale of fine and specialty chemicals. In 2021, the group will achieve revenue of about US$8 billion, and have established 70 manufacturing, R&D and operating facilities in about 30 countries, with four business units and a total of about 9,000 employees.