Huntsman & Flint Hills resources close on sale of Base Chemicals biz
14 Nov '07
2 min read
Peter R. Huntsman, President and CEO of Huntsman Corporation announced that Huntsman and Flint Hills Resources, LP, an independent, wholly owned subsidiary of Koch Industries, Inc., have closed on the sale of Huntsman's Base Chemicals business.
The sale of the Base Chemicals business is the second closing in a two-part transaction valued in total at approximately $770 million. The parties had previously closed on the sale of Huntsman's U.S. Polymers business in August.
Huntsman received approximately $415 million at the second closing, including the estimated value of associated inventory for its Base Chemicals business, which remains subject to a post-closing adjustment.
Huntsman will retain other elements of working capital, including accounts receivables, accounts payable and certain accrued liabilities, which will be liquidated for cash.
Huntsman had already received approximately $355 million in connection with the parties' earlier closing for the U.S. Polymers business, which also remains subject to a post-closing adjustment.
Pursuant to the agreement between Huntsman and Flint Hills Resources, the second closing occurred upon the successful restart of Huntsman's Port Arthur, Texas, olefins manufacturing facility.
The Base Chemicals business transferred to Flint Hills Resources does not include the captive ethylene unit at the retained Port Neches, Texas, facility which, along with a long-term post-closing arrangement for the supply of ethylene and propylene from Flint Hills to Huntsman, will continue to provide feedstock for Huntsman's downstream derivative units.
marketing@alchempro.com
