Clariant and Huntsman decide to merge
Clariant and Huntsman have signed a definitive agreement to combine in a merger of equals through an all-stock transaction after securing approval from their boards of directors.
Following the transaction, the new combined entity will be known as HuntsmanClariant with sales of approximately $13.2bn and a combined enterprise value of nearly $20bn.
Clariant CEO Hariolf Kottmann said: “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.”
The combined entity is anticipated to have a significantly improved growth profile.
HuntsmanClariant will utilise shared knowledge and expertise to develop a stronger joint innovation platform and facilitate the development of new products to achieve better returns and shareholder value.
Huntsman president and CEO Peter Huntsman said: “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.”
Under the transaction, Huntsman shareholders will receive 1.2196 shares in HuntsmanClariant for each Huntsman share.
The combined company will have global headquarters at Pratteln in Switzerland and operational headquarters in the Woodlands, Texas.
HuntsmanClariant expects to realise more than $3.5bn of value creation from approximately $400m in annual cost synergies. while full synergy run-rate is expected to be achieved within two years of closing.
The combined company will be governed by a board of directors with equal representation from Clariant and Huntsman.
Hariolf Kottmann will become the chairman of the board of HuntsmanClariant, while Peter Huntsman will assume the role of CEO of the combined company.
Subject to shareholder and regulatory approvals, the transaction is expected to close by the end of this year.
Image: Clariant CEO Hariolf Kottmann and Huntsman president and CEO Peter Huntsman. Photo: © Clariant.