The Woodlands, Texas - Peter Huntsman, president and ceo of Huntsman Corp. announced 15 Feb that Huntsman has signed definitive documents to sell its US Base Chemicals and Polymers business to Flint Hills Resources llc, a wholly owned subsidiary of Koch Industries, Inc.
Huntsman should gain about $761 million from the sale, a Huntsman statement said. Flint Hills Resources will acquire the manufacturing assets of Huntsman's US commodities business for $456 million in cash plus the value of inventory ($286 million at 31 Dec 2006) on the date the deal closes.
The transaction covers olefins and polymers manufacturing at five US sites: Port Arthur, Odessa and Longview, Texas; Peru, Illinois; and Marysville, Michigan. The business employs about 900. The captive ethylene unit at the retained Port Neches, Texas, site of Huntsman's Performance Products division is not included in the sale. This asset, and a long-term arrangement for the supply of ethylene and propylene from Flint Hills to Huntsman, will continue to provide feedstock for Huntsman's downstream units.
When the deal closes, Huntsman Corp., which recently sold its European commodities businesses to SABIC, "will have completed its planned divestitures of its commodity petrochemical businesses and its transformation to a company manufacturing and marketing differentiated products," said Peter Huntsman in the company statement.
"Our entire product line will now experience higher growth rates and much lower sensitivity to energy costs," the Huntsman chairman added. "Looking forward, we have transformed our business into one producing highly innovative products that serve an expanding global economy."