Muttenz, Switzerland – Huntsman and Clariant announced today that they plan to merge as equal companies through an all-stock transaction by the end of 2017.
The new company will be named HuntsmanClariant and, on a pro forma basis, will create a company with sales of approximately $13.2 bn, adjusted earnings before interest taxation depreciation and amortisation of $2.3 bn and a combined enterprise value of approximately $20 bn.
The combined company expects to create value worth over $3.5 bn through lower operational costs and better procurement. It will save approximately $400 m/year in costs within two years of the deal closing after a one-time cost of up to $500 m.
Huntsman is a world-scale polyurethanes, pigments, advanced materials, performance products and textile effects business. It is in the process of separating its pigments business and this is unaffected by the merger, Huntsman said.
Clariant, which was built up through the combination of a number of European chemicals firms, operates in: additives, catalysts, functional materials, industrial and consumer specialites, masterbatches, oil and mining services and pigments.
HuntsmanClariant will be chaired by Hariolf Kottmann, the current ceo of Clariant. Peter