Materials giants Clariant and Huntsman have announced they are to merge to create a global speciality chemicals company.
The all-stock merger of the US- and Swiss-based groups will create a new company named HuntsmanClariant, with sales of approximately $13.2 billion (approx.. £10.1bn GBP), an adjusted EBITDA of $2.3 billion (approx. £1.7bn GBP) and a combined enterprise value of approximately $20 billion (approx. £15.4 billion GBP), according to a joint statement.
The two companies say the new combined entity will benefit from each other’s strengths, stating it will have “a significantly improved growth profile in highly attractive end markets and geographies.”
Clariant shareholders will control 52 percent of the combined company, with Huntsman controlling the remainder.
The new company will be based in Switzerland and governed by a Board of Directors with equal representation from Clariant and Huntsman.
Hariolf Kottmann, current Clariant CEO, will become Chairman of the Board, Peter Huntsman, current Huntsman President and CEO, will become CEO and Jon Huntsman, founder and Chairman of Huntsman, shall become Chairman Emeritus and board member of HuntsmanClariant.
“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,” said Hariolf Kottmann, CEO of Clariant. “This is in the best interest of all of our stakeholders. Peter Huntsman and I share the same strategic vision and I look forward to working with him.”
Peter R. Huntsman, President and CEO of Huntsman, added: “I could not be more enthusiastic about this merger. Together, we will create a global leader in specialty chemicals with a combined balance sheet providing substantial financial strength and flexibility.”
The transaction is targeted to close by year end 2017, subject to Clariant and Huntsman shareholder approvals, regulatory approvals and other customary closing conditions.