Huntsman Sheds Intermediates and Surfactants Business

Chemicals manufacturer and marketer Huntsman Corporation wrapped up the sale of its chemical intermediates businesses to Indorama Ventures, including its PO/MBTE (propylene oxide and methyl tertiary butyl ether) and surfactants businesses, the firm announced in a release Sunday.

“This transformational transaction significantly reduces our capital-intensive upstream asset base, further bolsters our already strong balance sheet and allows us to further invest in and grow our downstream businesses,” Huntsman Chairman Peter Huntsman said in a statement. “We are committed to retaining our investment grade balance sheet and our continued balanced approach to capital allocation. This transaction greatly expands our flexibility and opportunity for select strategic and accretive acquisitions, as well as for expansions in our core downstream global footprint, and for continued opportunistic repurchases of our shares.”

While the deal is valued at $2 billion, the final purchase price shift due to customary post-closing adjustments. Huntsman said it expects the net cash proceeds to total about $1.6 billion. 

Based in Singapore, Indorama has more than 70 production facilities in over 30 countries, according to information on the firm’s website. The company produces polyethylene, polypropylene, nitrogen fertilizers, phosphate fertilizers, polyester, medical gloves, and a range of other products. 

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