Switzerland''s Basel-based Huntsman Corporation, which is traded on the New York Stock Exchange has announced that its textiles effects business has signed an agreement to acquire the Baroda division of Metrochem Industries Ltd for $46.5 million (approximately Rs189 crore) in cash.

The division to be acquired by Huntsman is a textile dyes and intermediates manufacturer based in Baroda, in Gujarat. The transaction, which is subject to regulatory approvals, is expected to close in January 2008.

The Baroda division of Metrochem, which employs approximately 300 associates, is well known to Huntsman as a long-term strategic supplier for its textile effects business. This acquisition will provide a secure supply of finished products for global markets and intermediates for other Huntsman manufacturing sites globally.

Last month Huntsman acquired majority ownership of MDI-based polyurethane systems supplier in the Gulf, Arabian Polyol Company (APC), its existing joint venture with its Saudi Arabian partner Saudi''s Basic Chemical Industries Limited, renaming the enterprise Huntsman APC. (See: Huntsman acquires majority stake in Saudi polyurethane JV)

Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.

Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman today has 14,000 employees and over 75 operations in 24 countries. The company had 2006 revenues from all operations of over $13 billion.