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02. April 2020

Huntsman: Acquisition of CVC Thermoset Specialties

Huntsman Corporation announced that it has agreed to acquire CVC Thermoset Specialties, a North American speciality chemical manufacturer serving the industrial composites, adhesives and coatings markets. CVC Thermoset Specialties is part of Emerald Performance Materials LLC which is majority owned by affiliates of American Securities LLC.

CVC Thermoset Specialties has annual revenues of approximately USD 115 million with two manufacturing facilities located in Akron, OH, and Maple Shade, NJ, USA. Under terms of the agreement, Huntsman will pay USD 300 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. The transaction is expected to close around midyear of 2020.

Commenting on the acquisition, Scott Wright, President of Huntsman's Advanced Materials division, said: “The acquisition of CVC Thermoset Specialties brings valuable complementary technology breadth to our Advanced Materials portfolio and its unique products will make systems using our class-leading epoxy-based materials even tougher, stronger, and more durable. This business manufactures highly specialized toughening, curing and other additives used in a wide range of composite, adhesive and coatings applications across aerospace, automotive and industrial markets. In addition to strengthening our position in North America, Huntsman will use our existing asset footprint and routes to market in Europe and Asia to rapidly grow and globalize CVC Thermoset Specialties' exciting and complementary product range. This acquisition will further improve our ability to create differentiation in our customers' applications, in particular through our strong formulations business.”

Peter Huntsman, Chairman, President and CEO, further commented: “This bolt-on fits all the criteria we look for in acquisitions for our Advanced Materials division, including new technology, synergies, and globalization opportunities. The business currently achieves EBITDA margins in excess of 25% and we expect to achieve significant synergies within two years.”

“In these uncertain times, our financial strength will allow us to keep looking for these types of acquisitions, while at the same time maintain a conservative balance sheet and opportunistically repurchase shares. We remain committed to our balanced approach to capital allocation. Year-to-date we have taken advantage of our depressed stock price and have repurchased approximately $85 million in stock. Lastly, while forward visibility remains low, the first quarter is on track to deliver on the outlook that we communicated on our February 13, 2020 earnings call,” he added.

www.huntsman.com
https://cvcthermoset.com

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