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SALT LAKE CITY — Utah's Huntsman Corp. and Switzerland's Clariant agreed to a merger late Sunday in an all-stock deal that would result in a chemicals giant with a combined value of $20 billion.
The deal, described as a merger of equals, comes as companies in the industry look for way to cut costs and boost revenue. The merged company will be called HuntsmanClariant.
The combination of both companies will create a global specialty chemical company with sales of approximately $13.2 billion, according to a Huntsman news release.
"I could not be more enthusiastic about this merger and look forward to working closely with Hariolf Kottmann, a man I have admired and trusted for the past decade," Peter R. Huntsman, president and CEO of Huntsman Corp., said in the news release. "Together, we will create a global leader in specialty chemicals with a combined balance sheet providing substantial financial strength and flexibility.”
Kottmann, CEO of Clariant, called it the "perfect" deal at the right time.
"Clariant and Huntsman are joining forces to gain much broader global reach, create more sustained innovation power and achieve new growth opportunities,” he said. “This is in the best interest of all of our stakeholders. Peter Huntsman and I share the same strategic vision and I look forward to working with him.”
The companies say they will benefit from each other's strengths.
HuntsmanClariant will have a significantly improved growth profile in highly attractive end markets and locations. It will leverage shared knowledge in sustainability and boast a much stronger joint innovation platform, according to the news release.
The transaction will see Clariant investors control about 52 percent of the combined group, while Huntsman shareholders would own the remainder.
The deal is targeted to close by year end, subject to Clariant and Huntsman shareholder approvals, regulatory approvals and other customary closing conditions. The companies say they are confident that the required regulatory approvals can be obtained in a timely manner.
The combined company, incorporated in Switzerland, will be governed by a board of directors with equal representation from Clariant and Huntsman.
HuntsmanClariant's global headquarters will be in Pratteln, Switzerland, while the operational headquarters will be in The Woodlands, Texas. It will maintain offices in Salt Lake City where company founder Jon Huntsman will continue to provide strategic counsel and knowledge of the chemical industry garnered over nearly 50 years. He will be named chairman emeritus and director HuntsmanClariant when the merger is complete.
Jon Huntsman founded Huntsman Corp., which was focused on styrofoam packing, with his brother in 1970. It now employs 15,000 people across a number of speciality chemical segments, including polyurethanes and advanced materials. Huntsman Sr. will be named chairman emeritus and director of HuntsmanClariant.
Chemical and Engineering News lists Huntsman Corp. as the 29th largest chemicals company in the world, with revenues of $10 billion in 2016. Huntsman has sought a large transaction since taking the company public in 2005.
Clariant had been spun off the larger chemicals group Sandoz in 1995. It employs about 17,000 people. Email: romboy@deseretnews.com Twitter: dennisromboy
