Specialty chemicals supplier Innospec has committed to purchase Huntsman’s European surfactants business dedicated to personal and home care markets. The transaction includes Huntsman’s manufacturing assets facilities located in Saint-Mihiel, France; Castiglione delle Stiviere, Italy; and Barcelona, Spain. The whole business employs approximately 430 people and generates sales revenues of around US $230 million annually and represents approximately US $24 million of EBITDA [1].
The purchase price is expected to be US $200 million with an Enterprise Value of US $225 million as Huntsman will retain related accounts receivable and trade payables. The transaction is expected to close early in the fourth quarter, after completion of the usual consultation with the employee representative bodies and clearance from the regulatory authorities.
“We have signalled for some time that we have been seeking an appropriate acquisition in the Personal Care sector. Our preferred profile was always to add to our technology platforms, and grow our geographical presence. Our target is to significantly expand the range of products we can offer to our customers in both Personal Care and Home Care,” explained Patrick S. Williams, President and CEO of Innospec.
“The Huntsman business has a well-established presence in Europe and the range of technologies is very complementary to the existing Innospec range. Together, we will now be competing in a much larger part of the sector. With substantial assets in Europe from which to manufacture our existing and future products, the acquisition will form a springboard to continue Innospec’s successful development of innovative technologies,” added Bruce McDonald, President of Performance Chemicals at Innospec.
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.
