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Indorama to acquire Huntsman’s integrated oxides and derivatives businesses

By Mary Page Bailey |

Indorama Ventures Public Co. Ltd. (IVL; Bangkok, Thailand; www.indoramaventures.com) has announced the acquisition of Huntsman Corp.’s (The Woodlands, Tex.; www.huntsman.com) integrated oxides and derivatives businesses. The purchase price is based on an enterprise value of $2.0 billion and up to $76 million in pension obligations, which corresponds to an EV/EBITDA multiple of 5.7. The deal accelerates IVL’s ability to achieve its stated goal to double its core EBITDA by 2023

This acquisition squarely fits into its growth segments of Integrated EOs and the Specialty Chemicals portfolio of IVL. The assets being acquired from Huntsman represent leadership in EO and PO derivatives, achieving additional revenue of $2.0 billion and an EBITDA margin of 18% in 2018.

The transaction will be funded by internal cash flows and debt financing and does not necessitate equity dilution. The nature of IVL’s business model enables it to achieve visible, diversified and steady cash flows making it a unique world-class chemical company. This acquisition further enhances this uniqueness.

The transaction is expected to be completed by 4Q 2019, subject to regulatory approvals.

Commenting on the acquisition, Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, “This acquisition is a momentous propellant in our journey towards our stated goal of being a global, diversified chemicals company with multiple, and related earning streams. I am excited by this defining acquisition since it encompasses and has a straight fit to all the values and strategic intent that we have incorporated in the IVL model; serving high growth markets, resilient and defensive industry, integrated assets serving the value chain downstream, competent and passionate management, and proprietary technology and Intellectual property. The combination of our two integrated EO assets, primarily used in captive production of EO & PO derivatives, will boost our earning streams with higher margin applications in daily necessities and strengthen our position with existing and new customers. We are thrilled to welcome our new colleagues and their added competencies which empowers our collective potential to grow continually. I am confident that this important business will drive value for all our stakeholders and underpin IVL’s earnings growth opportunities for years to come.”

Peter Huntsman, Chairman, President and CEO commented: “For Indorama Ventures, they will be acquiring a strong EO/PO derivatives business with a very experienced workforce and management team. This is also a transformational opportunity for Indorama Ventures that provides them hundreds of product grades and thousands of customers. Huntsman looks forward to continuing to work with Indorama Ventures as a customer and manufacturing partner through long-term commercial arrangements, including propylene oxide supply.”


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