The Woodlands, TX-based Huntsman Corporation announced plans Wednesday to sell its chemical intermediates and surfactants businesses to Indorama Ventures in a $2.076 billion transaction. intermediates Powder
Indorama will acquire a number of Huntsman’s production assets in the deal, including production plants in Port Neches, Dayton, and Chocolate Bayou in Texas, Ankleshwar, India, and Botany, Australia. The deal also includes Huntsman’s EO/PO derivatives business.
“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,” the president and chief executive officer of Huntsman, Peter Huntsman, said in a company press release. “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 and Indorama anticipate that the deal will close by the end of this year pending the completion of regulatory approvals and customary closing conditions. The transaction will be paid for with $2 billion in cash and up to $76 million in net underfunded pension and other post-employment benefit liabilities.