US Huntsman retains textiles; names TiO2 spin-off Venator

HOUSTON (ICIS)–Huntsman has decided to retain its textile effects business, excluding it from the planned spin-off of the titanium dioxide (TiO2) pigments and additives, the US-based producer said on Tuesday.

Under previous plans the company had intended to add textile effects to the pigments and additives spin-off.

Also on Tuesday, Huntsman said that the pigments and additives spin-off will be named Venator Materials Corporation. Venator is Latin for hunter. The name is intended, in part, to acknowledge the Huntsman legacy, the company said in a statement.

Venator shares are expected to trade on the New York Stock Exchange under the ticker VNTR after the distribution to Huntsman’s shareholders, which remains targeted for the second quarter of 2017.

“Strong pricing recovery for TiO2 and the identification of business improvement opportunities representing more than $75m in annual EBITDA (earnings before interest, taxation, depreciation and amortisation) are expected to significantly enhance the financial strength of Venator’s business,” CEO Peter Huntman said.

“We expect Venator will be a premier pigments company unencumbered by excessive debt or other unrelated liabilities,” he added.

Huntsman has been planning to separate the TiO2 business after it acquired Rockwood’s pigments and additives business in 2014. In October last year, Huntsman said that the spin-off would be based in the UK.

Additional reporting by Al Greenwood

INSET IMAGE: Titanium dioxide is used in paint and pigments. (Cultura/REX/Shutterstock)