Thailand’s Indorama to acquire chemical businesses of US-listed Huntsman for $2.1b

Thailand-based group Indorama Ventures will be acquiring the chemical intermediates businesses of US-listed Huntsman Corporation in a nearly $2.1-billion deal.

The transaction includes $2 billion in cash and $76 million in net underfunded pension, the Thai company said in a statement on Thursday.

The total net asset value of the acquired assets stood at around $889 million as of March 2019. Their combined profoma revenues were $1.97 billion in 2018.

As a result of the acquisition, Indorama Ventures said it will broaden the US Gulf Coast integrated oxides (EOs) operations, as the acquired businesses fit into its growth segments of integrated EOs and the specialty chemicals portfolio.

These leading downstream businesses will be the core platform for continuous growth in selective upstream and downstream integration over the next 5-10 years, it said.

On a proforma basis, the assets will add 25 per cent to its 2018 core EBITDA and also 23 per cent of additional manufacturing capacity in higher-margin businesses.

“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,” stated Aloke Lohia, group CEO, Indorama Ventures.

Peter Huntsman, chairman and CEO of the American seller, added: “This is a transformational opportunity for Indorama Ventures that provides them hundreds of product grades and thousands of customers.”

Having presence in 31 countries across the globe, Indorama Ventures has made outbound acquisitions that include German airbag yarns and technical textiles supplier UTT Beteiligungsgesellschaft mbH, INVISTA Resins & Fibers GmbH, Brazilian polyester staple fibre firm M&G Fibras Brasil, and a business unit of US-based Custom Polymers PET.