Huntsman Corp. of The Woodlands, TX, has announced that it has completed the acquisition of CVC Thermoset Specialties, a North American specialty chemical manufacturer serving the industrial composites, adhesives and coatings markets.
Huntsman acquired the business from Emerald Performance Materials LLC, a majority-owned affiliate of American Securities LLC, for approximately US$300 million, subject to customary closing adjustments. The all-cash transaction was funded from available liquidity.
The acquisition of CVC, with its specialized toughening, curing and other additives used in a wide range of applications and markets, is said to be aligned with Huntsman’s strategy of growing its specialty Advanced Materials portfolio. CVC has annual revenues of approximately US$115 million with manufacturing facilities located in Akron, OH, and Maple Shade, NJ.
Scott Wright, president of Huntsman’s Advanced Materials division, commented: “These products deliver enhanced performance, such as durability, flexibility, and chemical, crack and impact resistance, in harsh environments. Its applications make vehicles, aircraft, infrastructure and electronics lighter, stronger and last longer.
“Not only will this acquisition strengthen Advanced Materials’ position in North America, it offers products and technologies that we intend to rapidly grow and globalize by utilizing our existing asset footprint and routes to market in Europe and Asia. We expect to achieve approximately $15 million of annualized synergies within two years.”
According to Peter Huntsman, chairman, president and CEO of Huntsman, “this acquisition provides unique technology, cost efficiency, an expanded customer base, and greater shareholder value. We look forward to continuing to expand through transactions such as this.”