Huntsman: looking for downstream bolt-ons post Clariant.

The Woodlands, Texas – Peter Huntsman said that although the merger with Clariant is off  his firm could still receive payments from the Swiss polymer additives firm, and there are other growth options.

Speaking at Huntsman’s Q3 conference call Peter Huntsman said: ‘if Clariant enters into a deal within the next 18 months to sell the majority of its masterbatch in pigments businesses, then we are owed $60 m. Likewise, if Clariant within 18 months enters into a transaction or a series of transactions to sell greater than 35% of the business assets, as measured by revenue or net income, then we will be owed $60 m.

He continued: ‘If this sales results from a pre-termination proposal or inquiry driven by White Tale’s actions or communication, we believe we’re owed an additional $150 m. And just through all that, I don’t see any scenario where Huntsman would need to pay any part of the $210 m… if there are any meaningful divestitures here, I believe that Huntsman is entitled to some funds.’

Away from that deal Peter Huntsman added that his firm would become an investment grade stock ‘a first in the history of the company. ’He suggested that there are opportunities for bolt-on acquisitions in his firm’s downstream urethane businesses. He said that these had added between 20-25% of earnings in the PU business which ‘obviously and volumetrically is the core of the business, a very stable and a very steady growing business.’

He added that some of the firm’s downstream customers are struggling with higher raw material prices and ‘The combination of their business and our business may make more sense today than it did a couple of quarters ago. You have to take it on a case-by-case basis.’