Huntsman Corporation has announced a review of strategic options for its Textile Effects Division, including a possible sale.
The Huntsman board of directors has authorized management to conduct a strategic review of the Textile Effects Division, which is headquartered in Singapore, including a possible sale of the division. The review will begin early in the first quarter of 2022.
“We have been transparent about our continued evaluation of divestment opportunities that are both in line with our strategic goals and in the best interests of our shareholders,” said Peter R. Huntsman, chairman, president and CEO of Huntsman Corp. “We believe now is the right time to explore options for Textile Effects. We expect that the division will generate close to $100 million of Adjusted EBITDA in 2021, recovering much of what was lost due to Covid-19. While its value-added portfolio of sustainable products is consistent with Huntsman’s strategic direction, there may well be an external party that recognizes the value of these extremely attractive assets and will be a better owner for them.”
Huntsman Textile Effects brings innovations in textile dyes, chemicals and digital inks to brands and retailers around the world. The company’s textile solutions provide color and enhance the aesthetic, durability and performance of finished textiles, including functionality such as wrinkle resistance and water and stain repellence.
Huntsman Textile Effects also develops sustainable textiles with advanced technology such as non-fluorinated durable water repellence and eco-friendly digital printing. Its Avitera reactive dyeing technology meets global industry environmental standards and helps textile mills increase yield, improve productivity and reduce processing costs by significantly reducing water and energy consumption.
Huntsman Textile Effects operates 13 synthesis and formulation production sites in Asia, Europe and the Americas. It had sales revenue of $761 million for the 12 months through September. Earnings before interest, taxes, depreciation and amortization (EBITDA) in the period totaled $93 million.
Huntsman has not set a timetable or a deadline for the conclusion of its evaluation of strategic alternatives for the Textile Effects Division, but plans to move quickly, and it does not intend to comment further unless and until the board has approved a specific course of action or the company has otherwise determined that further disclosure is appropriate or required by law.
Huntsman Corporation is a publicly traded global manufacturer based in the Houston-area town of The Woodlands in Texas. The company markets differentiated and specialty chemicals with 2020 revenues of approximately $6 billion.