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Huntsman to acquire Gabriel Performance Products for USD250 million

December 08/2020

MOSCOW (MRC) -- Huntsman (The Woodlands, Texas) has agreed to acquire specialty chemicals firm Gabriel Performance Products (Akron, Ohio) for USD250 million in cash from Audax Private Equity. Gabriel, a manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants, and composite end markets, has three manufacturing facilities located in Ashtabula, Ohio; Harrison City, Pennsylvania; and Rock Hill, South Carolina, said Chenweek.

Gabriels 2019 revenues were about USD106 million, according to Huntsman, which says the purchase price is about 11x adjusted EBITDA, or 8x pro forma after accounting for synergies. Huntsman expects to close the deal in the first quarter of 2021.

Scott Wright, president of Huntsman's advanced materials division, says the acquisition will broaden Huntsmans specialties portfolio and complement the recent acquisition of CVC Thermoset Specialties. Gabriel makes highly specialized toughening and curing agents and other additives used in a wide range of composite, adhesive, and coatings applications, he notes. We expect that the Gabriel business will strengthen our North America footprint and provide significant commercial synergies as we expand and globalize their specialty products across our global footprint and customer base."

Huntsman acquired CVC for about USD300 million in May 2020. Peter Huntsman, chairman, president, and CEO, says the purchase of Gabriel concludes a series of strategic initiatives in the advanced materials division that began in 2019.

"Our initial intent was to complete the acquisitions of Gabriel and CVC simultaneously, together with the divestiture of our India DIY business earlier this year, he says. Despite the challenges created by COVID[-19], I am pleased that we have already closed on two of the transactions and intend to close on the acquisition of Gabriel within the first quarter of 2021. We have significantly strengthened our advanced materials portfolio and broadened our offerings to the market."

Combined, the three transactions will add approximately USD57 million of adjusted EBITDA pro forma for synergies to the advanced materials division at a cost of less than 5x EBITDA, says Huntsman. Gabriel in late 2015 acquired InChems phenoxy resin business, including the Rock Hill production facility. In October 2019, the company acquired a portfolio of alkyd resins from Deltech Resin Company.

As MRC informed earlier, Huntsmans Advanced Materials business is proud to announce the expansion of our Pan-American business relationship with our preferred distribution partner, Azelis Americas CASE, LLC in the US and Azelis Canada, Inc. in Canada.

We remind, Huntsman officially inaugurated its new 22,000 tonne/year aromatic polyester polyols plant in Kuan Yin, Taiwan. The 3,600-square meter polyols plant, completed in May, expands Huntsmans downstream polyurethanes capabilities in the Asia-Pacific region and marks the first time Huntsman has manufactured its TEROL polyols outside the United States.

Ethylene and propylene are feedstocks for producing PE and PP.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,760,950 tonnes in the first ten months of 2020, up by 3% year on year. Only high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) shipments increased. At the same time, PP shipments to the Russian market reached 978,870 tonnes in  January-October 2020 (calculated using the formula: production minus exports plus imports minus producers' inventories as of 1 January, 2020). Supply of exclusively of PP random copolymer increased.

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately USD7 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.
Author:Anna Larionova
Tags:petroleum products, PP, PE, neftegaz, petrochemistry, Huntsman.
Category:General News
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