WOODLANDS, Texas—An on-again, off-again merger of Huntsman Corp. and Clariant International Ltd. looks like it will finally come to fruition.
Huntsman and Clariant announced May 22 that they plan to merge as equal companies through an all-stock transaction by the end of 2017.
The new company will be named HuntsmanClariant and, on a pro forma basis, will create a company with sales of approximately $13.2 billion, adjusted earnings before interest taxation depreciation and amortisation of $2.3 billion and a combined enterprise value of approximately $20 billion.
The combined company expects to create value worth over $3.5 billion through lower operational costs and better procurement. It will save approximately $400 million per year in costs within two years of the deal closing after a one-time cost of up to $500 million.
Huntsman is a world-scale polyurethanes, pigments, advanced materials, performance products and textile effects business. It is in the process of separating its pigments business and this is unaffected by the merger, Huntsman said.
Clariant, which was built up through the combination of a number of European chemicals firms, operates in: additives, catalysts, functional materials, industrial and consumer specialties, masterbatches, oil and mining services and pigments.
Peter Huntsman to be CEO
Peter Huntsman, currently president and CEO of Huntsman, will become CEO of the new company. Jon Huntsman becomes chairman emeritus and a board member. The Huntsman family, and a group of former shareholders of Sud Chemie, which control 13.9 percent of Clariant stock, support the merger.
"I could not be more enthusiastic about this merger and look forward to working closely with Hariolf," Peter Huntsman said. "We look forward to a close association with his talented colleagues around the world. We will create a global leader in specialty chemicals with a combined balance sheet providing substantial financial strength and flexibility."