US Huntsman continues to eye acquisitions

23 February 2018 17:37 Source:ICIS News

HOUSTON (ICIS)--Huntsman continues to look for bolt-on acquisitions, the CEO of the US-based producer said on Friday.

The company will focus its search on epoxy resins, amines, surfactants and downstream methyl di-p-phenylene isocyanate (MDI), said Peter Huntsman, CEO. He made his comments during an earnings conference call.

"We are looking at a number of projects before us right now," Huntsman said.

Any targets should have some element of integration to it before the company can justify acquiring it, he said.

"In the past, I think we've been very successful in buying and integrating smaller bolt-on acquisitions," Huntsman said. "I think with a stronger balance sheet, that will expand the target and that will expand what would be the size of those targets, but I think we will need to continue to be very balanced in that approach."

The company is keen to maintain its long-term investment-grade metrics, he said.

Acquisitions make up one of four priorities for the company, Huntsman said. The other three are to continue investing in organic growth, returning cash to shareholders and continuing to sell its stake in the pigment producer Venator Materials. If all goes well, Huntsman should complete this sales process later this year.

Huntsman spun off Venator in 2017.

By Al Greenwood