Huntsman Buys Specialty Chemicals Firm CVC Thermoset

Differentiated and specialty chemicals firm Huntsman Corporation has entered into an agreement to purchase North American specialty chemical manufacturer CVC Thermoset Specialties from Emerald Performance Materials LLC, the Texas-based company announced in a release Monday. 

Huntsman will pay $300 million in an all-cash transaction to acquire the company and its two manufacturing facilities in Akron, OH and Maple Shade, NJ. CVC Thermoset brings in annual revenues totaling $115 million. 

“The acquisition of CVC Thermoset Specialties brings valuable complementary technology breadth to our Advanced Materials portfolio and its unique products will make systems using our class-leading epoxy-based materials even tougher, stronger, and more durable,” said Scott Wright, president of Huntsman’s Advanced Materials division, said in a statement. “This business manufactures highly specialized toughening, curling, and other additives used in a wide range of composite, adhesive, and coatings applications across aerospace, automotive, and industrial markets.”

The company will utilize its existing footprint and routes to market in Asia and Europe to expand CVC Thermoset Specialties’ product offerings. 

“This bolt-on acquisition fits all the criteria we look for in acquisitions for our Advanced Materials division, including new technology, synergies, and globalization opportunities. The business currently achieves EBITDA margins in excess of 25% and we expect to achieve these significant synergies within two years,” Peter Huntsman, chairman, CEO, and president of Huntsman, said in the release. “In these uncertain times, our financial strength will allow us to keep looking for these types of acquisitions, while at the same time maintain a conservative balance sheet and opportunistically repurchase shares.”

Huntsman expects the transaction to close by the middle of this year. 

Earlier this year, Powder & Bulk Solids reported that Hunstman sold its intermediates and surfactants business to Indorama Ventures.

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