Chemical maker Huntsman signs LoI to sell US butadiene business
25 Feb '06
2 min read
Commodity chemicals maker Huntsman Corporation, announced that the Company has signed a letter of intent to sell the assets of its US butadiene and MTBE business, which includes a manufacturing facility located in Port Neches, Texas, to Texas Petrochemicals, LP for a sales price of $275 million, subject to customary adjustments.
The transaction is expected to close in mid-2006.
Huntsman has owned the business since its 1994 acquisition of Texaco Chemical Company.
The manufacturing facility has a capacity of approximately 900 million pounds of butadiene per year and approximately 11,000 barrels per day of MTBE. The business has about 240 employees.
The business had 2005 revenues of approximately $626 million and EBITDA of approximately $43 million.
Peter R. Huntsman, President and CEO, commented, “Their sale of the butadiene business will allow them to focus more of their attention and resources on their differentiated businesses.
They intend to utilize the proceeds from this sale to reduce debt and to invest in other parts of the Company, including their recently announced acquisition of Ciba's Textile Effects business.
“They have owned the butadiene business and site for nearly 12 years, and have enjoyed a good return on their original investment.
Their associates who have worked in and currently run the business and facility are some of the most talented and dedicated professionals in the chemicalindustry.
marketing@alchempro.com
