Texas Petrochemicals, Inc. Enters Into a Purchase and Sale Agreement With Huntsman Corporation for U.S. Butadiene Business
Thursday April 6, 2:00 pm ET
HOUSTON, TX--(MARKET WIRE)--Apr 6, 2006 -- Texas Petrochemicals, Inc. today announced that Texas Petrochemicals LP has entered into a purchase and sale agreement for the purchase of the assets of the United States butadiene and related MTBE operations of Huntsman Corporation, which includes a manufacturing facility located in Port Neches, Texas. The purchase price is $269 million, subject to customary adjustments.
The two companies signed a letter of intent in February 2006. The transaction is expected to close in mid-2006.
"We are pleased with the execution of the purchase and sale agreement," said Charlie Shaver, president and CEO of Texas Petrochemicals, Inc. "This is another milestone in the company's long-term business strategy to add value within one of our core businesses, while maintaining a focus on the supplier and customer base we currently serve."
The Port Neches manufacturing facility has a capacity of approximately 900 million pounds of butadiene per year. The addition of these assets creates a business with more than $1.7 billion in revenues on a pro forma basis based on calendar year 2005 results.
Headquartered in Houston, Texas, Texas Petrochemicals LP is a premier chemical company with more than $1 billion in annual sales. The Company provides quality C4 chemical products and services to both local and global industry companies. The Company has manufacturing facilities in the industrial corridor adjacent to the Houston Ship Channel and operates product terminals in Baytown, Texas and Lake Charles, Louisiana. For more information, visit the Company's web site at www.txpetrochem.com.
Source: Texas Petrochemicals LP
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