Huntsman, Clariant to merge into a $20bn chemicals giant
22 May 2017
Swiss speciality chemicals giant Clariant AG, and US-based multinational manufacturer and marketer of chemical products for consumers and industriies have agreed to merge in an all-stock deal that would create a chemicals giant worth about $14 billion, as two companies look for ways to cut costs and boost revenue.
Huntsman Corporation and Clariant said their respective boards of directors today 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 basis, 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 deal would create a trans-Atlantic company valued at about $20 billion including debt, offering a wide array of chemicals such as polyurethanes, pigments, automotive fluids, additives and resins that are used across industries ranging from aerospace to agriculture to household-cleaning.
Together the two companies would operate in well over 100 countries and employ about 32,000. Combined they would generate annual revenue of more than $13 billion.
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 hopes to leverage shared knowledge in sustainability and boast a much stronger joint innovation platform, which will enable the development of new products in order to deliver superior returns and drive shareholder value.
''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,'' said Hariolf Kottmann, CEO of Clariant. ''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,'' he added.
''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,'' Peter R Huntsman, president and CEO of Huntsman, commented.
Clariant shareholders will own 52 per cent in the combined entity while Huntsman shareholders own the remaining 48 per cent equity stake.
Huntsman shareholders will receive 1.2196 shares in HuntsmanClariant for each Huntsman share (each existing Clariant share will remain outstanding as a share in HuntsmanClariant).
The board of directors of the combined entity will have equal representation from Clariant and Huntsman.
HuntsmanClariant will have its global headquarters in Pratteln, Switzerland, and operational headquarters in The Woodlands, Texas.
The stocks will have dual direct listing on the SIX Swiss Exchange and the New York Stock Exchange.