Huntsman Port Neches, 4 other sites pending $2.1 billion sale
Huntsman Corp. announced Wednesday the pending sale its chemical intermediates and surfactants businesses, including the Port Neches site, to Indorama Ventures for $2.1 billion.
Under terms of the agreement, Indorama Ventures would acquire Huntsman’s manufacturing facilities located in Port Neches; Dayton; Chocolate Bayou; Ankleshwar, India; and Botany, Australia. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close near year-end, according to a news release late Wednesday.
“This transaction further transforms Huntsman’s balance sheet and future,” Peter Huntsman, chairman, president and CEO of Huntsman, said. “It accelerates our ability to expand more in areas both downstream and complementary to our portfolio. This is another milestone in our stated strategy to focus more on our downstream and specialty businesses, where we will generate more stable margins and consistent, strong free cash flow.
“We are committed to retaining our strong investment grade balance sheet, repurchasing our shares, investing in organic research and select capacity expansions and acquiring strategic assets that are accretive to our earnings and create shareholder value.”
Huntsman said Indorama Ventures would be acquiring a strong ethylene oxide and propylene oxide derivatives business with a very experienced workforce and management team.
This, he said, is also a transformational opportunity for Indorama Ventures that provides them hundreds of product grades and thousands of customers.
“Huntsman looks forward to continuing to work with Indorama Ventures as a customer and manufacturing partner through long-term commercial arrangements, including propylene oxide supply,” he said.
In addition, Huntsman intends to accelerate share repurchases under its existing $1 billion multi-year authorization after the close of this transaction.
“This acquisition is a momentous propellant in our journey towards our stated goal of being a global, diversified chemicals company with multiple, and related earnings streams,” Aloke Lohia, Group CEO of Indorama Ventures, said.