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Innospec Concludes Acquisition of Huntsman’s European Surfactants Business

Published on 2017-01-02. Author : SpecialChem

THE WOODLANDS, Texas – Huntsman Corporation (NYSE: HUN) has completed the sale of its European surfactants business to Innospec Inc. (NASDAQ: IOSP) for an enterprise value of $225 million. This business represented approximately $24 million of EBITDA in 2015.

Enables $260 Million Early Repayment


Huntsman intends to make a $260 million early repayment of debt using proceeds from the sale and existing cash. This debt repayment is in addition to the recent debt reductions of $100 million in September 2016 and $100 million in July 2016.


Huntsman Completes Sale of European Surfactants BusinessHuntsman Completes Sale of European Surfactants Business;
Huntsman Completes Sale of European Surfactants Business


Huntsman remains committed to its global surfactants business, including in the United States and Australia, where its differentiated surfactants businesses are backward integrated into essential feedstocks. Huntsman retained certain core products strategic to its global agrochemicals, lubes and other businesses and entered into supply and long-term tolling arrangements with Innospec to allow Huntsman to continue marketing some of these products.

Huntsman's Strategic Transformation


The sale of the European surfactants business represents another step in Huntsman's strategic transformation of its Performance Products business, which recently expanded its downstream positioning with a polyetheramines expansion in Singapore and is currently undertaking a substantial cost savings and business improvement initiative.

Peter R. Huntsman, President and CEO, commented:

“By completing the sale of this business, we are executing our plan to focus on businesses within our portfolio with a greater long term strategic fit, while continuing to grow our downstream differentiated businesses. With the early repayment of another $260 million of debt using proceeds from the sale and existing cash, we have now repaid approximately $550 million of debt in 2016 and significantly strengthened our balance sheet.”

About Innospec Inc.

Innospec Inc. is an international specialty chemicals company with approximately 1300 employees in 20 countries. Innospec manufactures and supplies a wide range of specialty chemicals to markets in the Americas, Europe, the Middle East, Africa and Asia-Pacific. The Fuel Specialties business specializes in manufacturing and supplying fuel additives that improve fuel efficiency, boost engine performance and reduce harmful emissions. Oilfield Services provides specialty chemicals to all elements of the oil & gas exploration and production industry. The Performance Chemicals business creates innovative technology-based solutions for our customers in the Personal Care market, focusing on skincare, haircare and suncare. Octane Additives produces octane improvers to enhance gasoline.

About Huntsman

Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2015 revenues of more than $10 billion. Its chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. Huntsman operates more than 100 manufacturing and R&D facilities in approximately 30 countries and employ approximately 15,000 associates within Huntsman's 5 distinct business divisions.

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Source: Huntsman
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