Huntsman to Sell U.S. Butadiene Business
Friday February 24, 6:00 am ET
THE WOODLANDS, Texas, Feb. 24 /PRNewswire-FirstCall/ -- Huntsman Corporation, announced today that the Company has signed a letter of intent to sell the assets of its U. S. butadiene and MTBE business, which includes a manufacturing facility located in Port Neches, Texas, to Texas Petrochemicals, L.P. for a sales price of $275 million, subject to customary adjustments. The transaction is expected to close in mid-2006.
Huntsman has owned the business since its 1994 acquisition of Texaco Chemical Company. The manufacturing facility has a capacity of approximately 900 million pounds of butadiene per year and approximately 11,000 barrels per day of MTBE. The business has about 240 employees. The business had 2005 revenues of approximately $626 million and EBITDA of approximately $43 million.
Peter R. Huntsman, President and CEO, commented, "Our sale of the butadiene business will allow us to focus more of our attention and resources on our differentiated businesses. We intend to utilize the proceeds from this sale to reduce debt and to invest in other parts of the Company, including our recently announced acquisition of Ciba's Textile Effects business.
"We have owned the butadiene business and site for nearly 12 years, and have enjoyed a good return on our original investment. Our associates who have worked in and currently run the business and facility are some of the most talented and dedicated professionals in the chemical industry. Texas Petrochemical is a company where butadiene is among its core products. We purchased a plant in 1994 that was on the verge of closure. This sale to TPC will ensure a long-term future for this site."
Huntsman's PO/MTBE and Oxides/Olefins facilities in Port Neches and its facility in nearby Port Arthur are not included in the sale.
Huntsman is a global manufacturer and marketer of differentiated and commodity chemicals. Its operating companies manufacture basic products for a variety of global industries including chemicals, plastics, automotive, aviation, footwear, paints and coatings, construction, technology, agriculture, health care, textiles, detergent, personal care, furniture, appliances and packaging. Originally known for pioneering innovations in packaging, and later, rapid and integrated growth in petrochemicals, Huntsman today has 11,300 employees, 57 operations in 22 countries and had 2005 revenues of $13 billion.
Source: Huntsman Corporation
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