Huntsman Completes Purchase of Ciba Specialty Chemicals' Textile Effects Business
COMPANY FORMS NEW BUSINESS DIVISION
The Woodlands, TX, July 3, 2006 - Peter R. Huntsman, President and CEO of Huntsman Corporation (NYSE: HUN), announced today that the Company has completed its previously announced acquisition of the global Textile Effects business of Ciba Specialty Chemicals Holding Inc. for CHF 332 million ($253 million), subject to customary post-closing working capital and other adjustments.
Mr. Huntsman said the Company will immediately combine Textile Effects with its Advanced Materials business to form a new division called Materials and Effects. Paul Hulme, who currently is President of Advanced Materials, will be President of the new Materials and Effects division.
Mr. Huntsman commented, “We are pleased the acquisition has gone smoothly and look forward, now, to the Textile Effects business being an integral part of our differentiated business group. The acquisition is in keeping with our goal of considerably expanding our differentiated portfolio. Further, we believe combining Textile Effects with our Advanced Materials division will bring us significant beneficial synergies and efficiencies.”
Textile Effects is the leading global supplier of textile solutions, manufacturing a broad range of dye and chemical products that enhance the color of finished textiles and improve such performance characteristics as wrinkle resistance and the ability to repel water and stains. The business has approximately 4,000 employees and operates eleven primary manufacturing facilities located in seven countries. It serves over 10,000 customers located in 80 countries.
Textile Effects had 2005 Adjusted EBITDA of CHF 109 million ($88 million) on sales of CHF 1,276 million ($1,029 million), compared to 2004 Adjusted EBITDA of CHF 89 million ($72 million) on sales of CHF 1,293 million ($1,043 million).
(Please see the table at the end of this news release for a reconciliation of Adjusted EBITDA.)
The purchase price of CHF 332 million ($253 million) was reduced by (i) approximately CHF 75 million ($57 million) in assumed debt and unfunded pension and other post employment liabilities and (ii) CHF 40 million ($31 million) in unspent restructuring costs.
The global headquarters of the Materials and Effects division will be Basel, Switzerland. With more than 1,350 people the Basel site will have more employees than any other Huntsman site.
Huntsman is a global manufacturer and marketer of differentiated and commodity chemicals. Its operating companies manufacture basic products for a variety of global industries including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, textiles, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging, and later, rapid and integrated growth in petrochemicals, Huntsman, with the acquisition of the Textile Effects business, has 15,000 employees and 78 operations in 24 countries. The Company had 2005 revenues of $13 billion. Adjusting for the Textile Effects purchase and the recent sale of its U.S. butadiene/MTBE business, Huntsman’s 2005 revenues would have been $13.3 billion.
Statements in this release that are not historical are forward-looking statements. These statements are based on management’s current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company’s operations, markets, products, services, prices and other factors as discussed in the Huntsman companies’ filings with the Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, financial, economic, competitive, environmental, political, legal, regulatory and technological factors. Accordingly, there can be no assurance that the company’s expectations will be realized. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by securities and other applicable laws.
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