The Textile Effects division of Huntsman Corporation, which was formally placed up for sale at the end of 2021, will be acquired by global specialty chemicals firm, Archroma. The transaction’s estimated $718 million total enterprise value includes the assumption of $125 million in net unfunded pension obligations as of December 31, 2021. Huntsman will contribute up to $80 million in preferred equity toward the purchase, which SK Capital Partners will work to syndicate before the deal closes.
The Textile Effects segment reported revenues of $772 million and adjusted EBITDA of $94 million for the twelve months that ended on June 30, 2022. Huntsman estimates that the sale will generate about $50 million in cash taxes. Beginning in the third quarter of 2022, Huntsman expects to list Textile Effects as discontinued operations. The deal is anticipated to conclude in the first half of 2023, subject to regulatory clearances and other usual closing conditions.
Peter Huntsman, Chairman, President, and CEO, said that over the last seven months, they have carried out a thorough strategic evaluation of their Textile Effects division, which included in-depth conversations wide range of relevant parties. Their Board of Directors determined that SK Capital would be a better long-term owner of the firm than Huntsman and that the value they gave was in the best interests of their shareholders after carefully examining all available choices and potential proposals for the company. After the deal is completed, Textile Effects and SK Capital’s Archroma company will merge to form a global leader in textile chemicals and dyes, as well as a pioneer in sustainability and innovation.
Huntsman added that in line with their current balanced capital allocation program, which includes strategic investments and acquisitions to further strengthen their core businesses as well as returning cash to shareholders through both their dividend and share repurchase program, they anticipate using the cash proceeds from this divestiture.
Under Armour, Hohenstein and PPT Group, has introduced a standardised method to measure microfibre release from textiles during simulated washing…
The RISE for Impact project is collaborating with farmers in the cotton supply chain to promote decent work by integrating…
Cosmo First has unveiled its new range of Paint Protection Films designed to protect vehicle exteriors with advanced features ensuring…
Mellowdrama has launched its latest ready-to-wear collection, ‘AlterEgo,’ using repurposed fabric waste focusing on themes of individuality and self-expression.
DRDO, Indian Institute of Technology Delhi, and 10 companies have signed agreements to develop and produce advanced textile-based products for…
Milliken & Company has announced that it is the first textile manufacturer to provide non-PFAS materials for all three layers…