US Huntsman eyes bolt-on acquisitions targeting specialty, downstream businesses

Adam Yanelli

30-Jul-2021

HOUSTON (ICIS)–Huntsman will use its strong balance sheet to focus on building its core platforms through targeted bolt-on acquisitions, the US-based polyurethanes and epoxy-resin producer said on Friday.

Speaking during a conference call to discuss second-quarter earnings, company executives said Huntsman will “aggressively pursue M&A (merger and acquisition) opportunities”.

Huntsman CFO Philip Lister said that the company divested about one-fifth of its portfolio in the sale to Indorama in early 2020.

“Where it makes sense from a valuation perspective, this M&A strategy will continue as we intend to grow our core platforms, particularly in our specialty and downstream businesses,” Lister said.

Huntsman sold its intermediates and surfactants businesses for around $2bn to Indorama on 5 February.

The company used the financial flexibility from that sale to acquire epoxy resins and nitrile latex producer CVC Thermoset Specialties for $300m in cash in March 2020, and for its $350m acquisition of spray polyurethane foam (SPF) producer Icynene-Lapolla in February 2020.

CEO Peter Huntsman said the company will use a disciplined approach.

“We have a very strong balance sheet that affords us to aggressively pursue M&A opportunities,” Huntsman said, adding that any acquisitions will be done where the company has true synergies, growth opportunities, and the ability to stabilize earnings.

“Having said that, I have been surprised at some of the multiples that have been seen in some of the recent transactions in this industry,” he said. “As I have said before, we will be disciplined.”

Additional reporting by Joseph Chang

READ MORE

Global News + ICIS Chemical Business (ICB)

See the full picture, with unlimited access to ICIS chemicals news across all markets and regions, plus ICB, the industry-leading magazine for the chemicals industry.

Contact us

Now, more than ever, dynamic insights are key to navigating complex, volatile commodity markets. Access to expert insights on the latest industry developments and tracking market changes are vital in making sustainable business decisions.

Want to learn about how we can work together to bring you actionable insight and support your business decisions?

Need Help?

Need Help?