22 May 2017
DETAILS
* Merger of equals to create
a leading global specialty chemical company
with approximately $20 billion enterprise value
at announcement
* More than $3.5 billion value creation
through annual cost synergies in excess of $400 million
* Enhanced returns from improved growth profile
in highly attractive end markets and
key geographies such as the United States and China
* Opportunities for stronger joint innovation platforms
and shared knowledge in sustainability
* Stronger balance sheet and cash flow generation;
plan to continue Clariant’s attractive dividend policy
* Transaction targeted to close by year end 2017
* Previously announced IPO of
Huntsman’s Pigments and Additives business (Venator)
to continue as planned in summer 2017
Clariant (SIX: CLN) and Huntsman Corporation (NYSE: HUN)
today announced that
their Boards of Directors unanimously approved
a definitive agreement
to combine in a merger of equals
through an all-stock transaction.
The merged company will be named
HuntsmanClariant.
On a pro forma 2016 basis1 ,
the combination of both companies will create
a leading global specialty chemical company
with sales of approximately $13.2 billion,
an adjusted EBITDA of $2.3 billion
and a combined enterprise value
of approximately $20 billion at announcement.
The combined entity will benefit from each other’s strengths.
It will have a significantly improved
growth profile in highly attractive end markets
and geographies.
HuntsmanClariant will leverage shared knowledge
in sustainability and boast a much stronger
joint innovation platform.
This will enable the development of new products
in order to
deliver superior returns and
drive shareholder value.
Hariolf Kottmann,
CEO of Clariant
“This is the perfect deal at the right time.
Clariant and Huntsman are joining forces
to gain much broader global reach,
create more sustained innovation power
and achieve new growth opportunities,”
“This is in the best interest of all of our stakeholders.
Peter Huntsman and I share the same strategic vision
and I look forward to working with him.”
Peter R. Huntsman,
President and CEO of Huntsman
“I could not be more enthusiastic about this merger
and look forward to working closely with
Hariolf Kottmann,
a man I have admired and trusted for the past decade.
We also look forward to a close association with
his immensely talented colleagues around the world.
Together, we will create a global leader in specialty chemicals
with a combined balance sheet
providing substantial financial strength and flexibility.”
WWW.CHEMWINFO.COM BY KHUN PHICHAI
