THE WOODLANDS, TX — Huntsman Corp. has entered into a definitive agreement to sell its chemical intermediates businesses, which includes PO/MTBE, and its surfactants businesses to Indorama Ventures in a transaction valued at $2.076 billion. Under the terms of the agreement, Indorama Ventures will acquire Huntsman's manufacturing facilities located in Port Neches, Texas; Dayton, Texas; Chocolate Bayou, Texas; Ankleshwar, India; and Botany, Australia. The transaction is subject to regulatory approvals and other customary closing conditions and is expected to close near year-end.
Peter Huntsman, Chairman, President and CEO, commented, "This transaction further transforms Huntsman's balance sheet and future. It accelerates our ability to expand more in areas both downstream and complementary to our portfolio. 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. 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.
"For Indorama Ventures, they will be acquiring a strong EO/PO derivatives business with a very experienced workforce and management team. This is also a transformational opportunity for Indorama Ventures that provides them hundreds of product grades and thousands of customers. Huntsman looks forward to continuing to work with Indorama Ventures as a customer and manufacturing partner through long-term commercial arrangements, including propylene oxide supply.
"Huntsman intends to accelerate share repurchases under its existing $1 billion multi-year authorization after the close of this transaction."
Aloke Lohia, Group CEO of Indorama Ventures, said, "This acquisition is a momentous propellant in our journey towards our stated goal of being a global, diversified chemicals company with multiple and related earnings streams."