Specialty chemical producer Archroma acquisition of Huntsman Textile Effects is official.
The $718 million deal to purchase the Huntsman Corporation subsidiary was first announced in August, with Archroma Group CEO Heike van de Kerkhof characterizing the deal as a “merger of equals.” The integrated company now has more than 5,000 employees across 42 countries and 35 production sites, including Huntsman Textile Effects’ 2,300 staff. Archroma said it will continue to focus on performance and innovation in the textile chemical space.
The deal also marks a new chapter for Archroma, which will separate its business into two operating divisions, each focused on a different end market. Huntsman Textile Effects complements the existing performance textile specialties business, and goes by the new name Archroma Textile Effects. Former Huntsman Textile Effects president Rohit Aggarwal, now divisional president and CEO of the operation and president in Asia, was tapped to head up the division.
Meanwhile, the Packaging and Paper Specialties and Coatings, Adhesives and Sealants businesses have been consolidated and renamed Archroma Paper, Packaging and Coatings. Divisional president and CEO Sameer Singla, who also serves as president in the Americas, Europe, Middle East and Africa, heads up the business.
The restructuring enables each division to focus its resources on its audience needa, with Archroma Textile Effects supporting trends toward sustainable fashion with innovations like water-based coatings and other solutions. In recent years, Archroma acquired the textile chemicals business of BASF and textile dye and chemical maker M. Dohmen.
De Kerkhof said the company’s advancement in recent years has been driven by such strategic acquisitions and a focus on innovation. “We have made substantial investments in development and production of high performance and earth-friendlier dyes, as well as a host of systems and solutions that reduce the environmental and energy footprints of the mills, leading the industry’s efforts to offer more sustainable products to the consumers,” she said. “The acquisition of Huntsman Textile Effects enhances Archroma’s position as a leader in innovation, service and sustainability and creates a powerhouse with superior capabilities to serve our customers and markets.”
The integration will allow for “the cost-effective innovation, quality, reliability, expertise and market coverage that our partners need to win in the current market conditions,” Thomas Bucher, group chief finance officer, said. “With this acquisition, Archroma is now in a position to leverage the complementarities and synergies of not just one but two leaders in textile chemicals and dyes.”
“We share the same passion for innovation and the same vision for a more efficient and sustainable textile and apparel sector,” Aggarwal added. “At this critical time for our industry, we have a unique opportunity to step up as champions of transformation that help textile manufacturers and brands around the globe find new avenues for growth and new ways to delight and inspire consumers.”