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Huntsman-Clariant Present First Update on Merger

Wednesday, August 2, 2017

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Clariant (Muttenz, Switzerland) and Huntsman International LLC (The Woodlands, Texas) recently presented the first merger update for shareholders. Huntsman also recently announced a subsidiary company’s IPO.

The merger is proceeding as planned, with continuing signs of strong progress toward the slated closing date, which is projected for December 2017 or January 2018.

Joint Strategic Direction and Update

For the foreseeable future, both companies have agreed to a joint strategic direction in order to create short- and long-term value. This will be based in a focus on higher growth, as well as higher margin businesses.

There will also be steps taken to ensure organic sales revenue growth of 2 percent p.a. at approximately 20 percent EBITDA margin, with synergies totaling to an excess of $400 million as well as $25 million in terms of a tax saving target.

Huntsman International LLC

Clariant (Muttenz, Switzerland) and Huntsman International LLC (The Woodlands, TX) recently presented the first update on the merger for shareholders. Huntsman has also announced a subsidiary company’s IPO.

The update includes:

  • Complementary benefits will come as a result of the companies’ performance products, care chemicals and natural resources. In total, these represent roughly 35 percent of the combined sales for HuntsmanClariant, as well as a broad surfactants portfolio.
  • Both companies have similar EBITDA margins at 17.2 percent, including synergies.
  • There will be opportunities for growth, including cross-selling and new product applications.
  • HuntsmanClariant will be utilizing a wide number of its assets, while also moving into specialties and more differentiated applications.
  • Both complementary assets and geography will provide expanded global reach.

For both companies, the majority of future investments will be geared toward growth. As for other plans, formulation- and application-based segment niches will be expanded upon, along with bespoke polyurethane systems, high-end composites and customer-oriented products.

Huntsman IPO

Huntsman announced last week that subsidiary company Venator Materials PLC has launched its initial public offering and will be listed on the New York Stock Exchange this month.

According to the Houston Chronicle, the IPO for the new pigments business totals nearly $500 million.

Currently, the IPO consists of 2.7 million ordinary shares, with a slated offering price of $20 to $22 per share. Huntsman is selling the shares, and the company says Venator will not receive any proceeds from the offering. As it stands, Huntsman plans to offer grant underwriters a 30-day option to purchase up to an additional 3.4 million shares.

   

Tagged categories: Acquisitions; Asia Pacific; Business operations; Clariant; EMEA (Europe, Middle East and Africa); Good Technical Practice; Huntsman; Latin America; Mergers; North America

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