Huntsman Corporation has finalized the sale of its chemical intermediates’ businesses, incorporating PO/MTBE, and surfactants businesses worth $2 billion to Indorama Ventures. The deal incorporates transfer of up to $76 million in net underfunded pension and other post-employment benefit liabilities, along with a cash purchase price of 1.93 billion, incorporating estimated adjustments to the purchase price for working capital.
According to the reports, the final procurement price will depend upon customary post-closing adjustments. Apparently, the net cash proceeds are projected to be below $1.6 billion.
Chairman, President and CEO of Huntsman Peter Huntsman was quoted saying the highly-anticipated transaction would minimize the capital-intensive upstream asset base and propel the company’s balance sheet. Huntsman went on to stress that the transaction was yet another feather in the cap in their strategy to place emphasis on downstream and specialty businesses, which will help them witness sustained free cash flow and more stable margins.
He signified the company’s commitment to retain strong grade balance sheet, investing in organic research, repurchasing our shares, create shareholder value and acquire strategic assets which are accretive to earnings.
Huntsman perceives this momentous transaction as a win-win situation for both Huntsman and Indorama. Huntsman highlighted that Indorama, spearheaded by Aloke Lohia, is a family-run business which comprehends the value of quality people. The CEO looks forward to work with Indorama Ventures as a manufacturing and customer partner.
Huntsman is a publicly traded company with revenue in 2018 accounting for over $9 billion. Reportedly, the company operates in nearly 30 countries with over 75 manufacturing, operations and R&D facilities and employs around 10,000 associates within four separate business divisions. The company’s mission is to boost sustainability by operating in a clean, safe and efficient facilities in a socially and environmentally responsible way.