International. Huntsman Corporation and Clariant have announced that their Boards of Directors unanimously approved a definitive agreement to combine into a merger of equals through an all-stock transaction.
The merged company will be called HuntsmanClariant. On a pro forma 2016 basis, the combination of both companies will create a global specialty chemicals company with sales of approximately $13.2 billion, adjusted EBITDA of $2.3 billion and a combined company value of approximately $20 billion.
The combined entity will benefit from each other's strengths. It will have a significantly improved growth profile in end markets and very attractive geographical areas.
HuntsmanClariant will leverage shared knowledge in sustainability and have a much stronger joint innovation platform. This will enable the development of new products in order to deliver superior returns and increase shareholder value.
"Clariant and Huntsman are joining forces to gain a much broader global reach, create more sustained innovation power, and achieve new growth opportunities," said Hariolf Kottmann, CEO of Clariant. Peter Huntsman and I share the same strategic vision and look forward to working with him."
Peter R. Huntsman, President and CEO of Huntsman, commented, "I couldn't be more excited about this merger and look forward to working closely with Hariolf Kottmann, a man I have admired and trusted over the past decade. A close partnership with his highly talented colleagues around the world. Together, we will create a global leader in specialty chemicals with a combined balance sheet that provides substantial financial strength and flexibility."
