MOSCOW (MRC) -- Huntsman Corporation announced that Innospec Inc. has committed to purchase Huntsman's European surfactants business, said Streetinsider.
Under the terms of the planned transaction, Innospec would acquire Huntsman's manufacturing facilities located in Saint-Mihiel, France; Castiglione delle Stiviere, Italy; and Barcelona, Spain.
As part of the USD225 million enterprise value, Huntsman would retain its related accounts receivables and trade payables. The business represents approximately USD24 million of EBITDA. Closing is expected to occur by the end of the fourth quarter of 2016, and is subject to customary conditions, including the representative bodies consultation processes where required by applicable law. Net proceeds of the sale would be used to repay debt. This debt repayment would be in addition to Huntsman's recent USD100 million debt reduction that occurred on July 22, 2016, and the proceeds would also be in addition to Huntsman's stated objective of generating more than USD350 million of free cash flow in 2016.
Huntsman remains committed to its global surfactants business, including in the United States and Australia, where its differentiated surfactants businesses are backward integrated into essential feedstocks. Huntsman plans to retain certain core products strategic to its global agrochemicals lubes and certain other businesses. Upon consummating the planned transaction, Huntsman would enter into supply and long-term tolling arrangements with Innospec in order to continue marketing certain of these products.
As MRC informed earlier, in 2014, Huntsman sold its European commodity surfactants business. The planned transaction with Innospec represents another step in Huntsman's strategic transformation of its Performance Products business. This business is currently expanding its downstream positioning with a polyetheramines expansion in Singapore, as well as undertaking a substantial cost savings and business improvement initiative.
Huntsman is a global manufacturer and marketer of differentiated chemicals. Our operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
MRC