American chemical manufacturer and marketer Huntsman Corporation is preparing to part ways with its India-Based DIY (Do-It-Yourself) Consumer Adhesives Business after agreeing to a $285 million sale to Pidilite Industries Ltd, the company announced in a release Wednesday.
“We have taken this business and built it from almost nothing to be a market leader in India. To take it to the next level of size and value, we simply do not have the footprint in India to do so. Pidilite is a respected leader in consumer adhesives within India and is in a better position to invest in and more aggressively grow this consumer DIY business over the years,” said Peter Huntsman, chairman, CEO, and president of Huntsman, in a statement. “We anticipate within the coming months that we will be able to deploy the proceeds from this asset and replace the lost EBITDA with other growth assets that fit even better with our core Advanced Materials specialty business.”
The company will receive $257 million in cash at the close of the transaction and $28 million in cash through an earnout over an 18-month period if the business brings in revenue that is in-line with 2019 figures.
Huntsman expects the deal to close by next week.