Chemical maker Huntsman to acquire textile business of Ciba
20 Feb '06
3 min read
They also see considerable supply chain and commercial synergies with their existing businesses, which they are confident will significantly enhance Huntsman's position in select markets.
In addition, with approximately CHF 450 million ($360 million) in revenues in Asia, Textile Effects will compliment their continued expansion in this region.
They are looking forward with great anticipation to making Textile Effects an integral part of their differentiated business portfolio."
Huntsman said the acquisition will be immediately accretive to Huntsman's earnings per share and should add approximately $0.30 per share to the company's annual earnings by 2008 when the business is fully integrated and restructuring activities are completed.
This is Huntsman's second acquisition of a Ciba Specialty Chemicals business. In 2003, Huntsman acquired Vantico Group S.A. which was formerly Ciba's Performance Polymers division.
This is now Huntsman's Advanced Materials division, which will operate shared sites with Textile Effects in Basel, Switzerland and in Panyu, China.
The purchase price of CHF 332 million ($253 million) will be reduced (i) by approximately CHF 75 million ($57 million) in assumed debt and unfunded pension and other post employment liabilities and (ii) up to CHF 40 million ($31 million)in unspent restructuring costs.
The final purchase price is subject to a working capital and net debt adjustment.
marketing@alchempro.com
