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MOSCOW (MRC) -- Huntsman Corporation
announced 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 USD285 million, excluding customary working capital and other
adjustments, as per the company's press release.
The transaction value
represents a 2019 adjusted EBITDA multiple of approximately 15 times. Under the
terms of the agreement Huntsman will receive approximately USD257 million in
cash at closing and up to approximately USD28 million of additional cash under
an earn out 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."
As MRC reported earlier,
Nanjing Jinling Huntsman, a joint venture between Huntsman and Sinopec Jinling,
planned to shut
its propylene oxide plant in Nanjing (Nanjing, Jiangsu Province, China)
on November 1 for scheduled maintenance. This plant with a capacity of 240,000
tonnes/year of propylene oxide will be closed until approximately 25
November.
According to MRC's ScanPlast report,
PP shipments to the Russian market reached 880,130 tonnes in the nine months of
2020 (calculated using the formula: production minus exports plus imports,
exluding producers' inventories as of 1 January, 2020). Supply increased
exclusively of PP random copolymer.
Huntsman Corporation is a publicly
traded global manufacturer and marketer of differentiated and specialty
chemicals with 2019 revenues of approximately USD7 billion. The company's
chemical products number in the thousands and are sold worldwide to
manufacturers serving a broad and diverse range of consumer and industrial end
markets. The company operates 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. |
