Huntsman to sell European commodity surfactants operations, including ethoxylation facility in Lavera, France, to Wilmar International, supply company with sulphated surfactant products from facilities in France and Italy through multi-year accord
April 10, 2014
– US differentiated chemicals maker Huntsman Corp (NYSE:HUN) has agreed to divest its European commodity surfactants operations to Wilmar Europe Holdings BV, a fully-controlled unit of Singaporean agribusiness group Wilmar International Ltd (SGX:F34), the pair said on Thursday.
The value of the deal, which covers Huntsman's ethoxylation facility in Lavera, France, was not revealed.
The deal hinges on the satisfaction of closing conditions, including clearance by French regulators, the companies said.
As part of the move, Wilmar will ink a multi-year accord to buy sulphated surfactant products from Huntsman facilities in France and Italy.
Huntsman has said it wants to downsize and streamline its surfactants business in Europe, which it aims to achieve through a rejig, including closure of an Italian commodity surfactants facility and therefocusing on differentiated surfactants after the disposal to Wilmar.
Through the disposal of commodity surfactant product lines in Europe, the US firm aims to boost its annual EBITDA by USD20m (EUR14.4m), it has said.
The rejig would have a positive impact on Huntsman's performance products division in Europe and will save jobs, CEO Peter Huntsman said.
For Wilmar, the deal means expanding its European presence and extending its integrated chain to be able to provide enhanced service to clients in all geographies, CEO Kuok Khoon Hong noted.