Huntsman Completes the Acquisition of Gabriel Performance Products, Further Expanding its Specialty Chemicals Portfolio

Rhea-AI Summary

Huntsman Corporation (NYSE: HUN) has completed its acquisition of Gabriel Performance Products for $250 million, enhancing its specialty chemicals portfolio. Gabriel, a manufacturer of specialty additives and epoxy curing agents, reported revenues of approximately $106 million in 2019. The transaction, funded through available liquidity, represents an adjusted EBITDA multiple of approximately 11 times, or 8 times considering synergies. This acquisition strengthens Huntsman's position in the coatings, adhesives, and composite markets.

Positive

• Acquisition enhances specialty chemicals portfolio and market reach.
• Gabriel generated $106 million in revenue in 2019, providing immediate cash flow.
• Purchase price of $250 million reflects an adjusted EBITDA multiple of approximately 11, showcasing a potentially favorable valuation.

Negative

• Integration challenges may arise from merging operations and corporate cultures.
• Potential risks include achieving projected synergies and managing operational disruptions.

THE WOODLANDS, Texas, Jan. 15, 2021 /PRNewswire/ -- Huntsman Corporation (NYSE: HUN) today announced it completed the acquisition of Gabriel Performance Products (Gabriel), a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants and composite end-markets, from Audax Private Equity. 

Huntsman paid $250 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Gabriel had 2019 revenues of approximately $106 million with three manufacturing facilities located in Ashtabula, Ohio, Harrison City, Pennsylvania and Rock Hill, South Carolina.  Based on calendar year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 11 times, or approximately 8 times pro forma for synergies.    

About Huntsman:
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion. Our chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. We operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within our four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.

Social Media:
Twitter: www.twitter.com/Huntsman_Corp
Facebook: www.facebook.com/huntsmancorp
LinkedIn: www.linkedin.com/company/huntsman 

Forward-Looking Statements:
Certain information in this release constitutes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on management's current beliefs and expectations. The forward-looking statements in this release are subject to uncertainty and changes in circumstances and involve risks and uncertainties that may affect the company's operations, markets, products, services, prices and other factors as discussed under the caption "Risk Factors" in the Huntsman companies' filings with the U.S. Securities and Exchange Commission. Significant risks and uncertainties may relate to, but are not limited to, volatile global economic conditions, cyclical and volatile product markets, disruptions in production at manufacturing facilities, reorganization or restructuring of Huntsman's operations, including any delay of, or other negative developments affecting the ability to implement cost reductions, timing of proposed transactions, and manufacturing optimization improvements in Huntsman businesses and realize anticipated cost savings, ability to achieve projected synergies, and other financial, economic, competitive, environmental, political, legal, regulatory and technological factors. The company assumes no obligation to provide revisions to any forward-looking statements should circumstances change, except as otherwise required by applicable laws.

 

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SOURCE Huntsman Corporation

FAQ

What is the significance of Huntsman's acquisition of Gabriel Performance Products?

This acquisition enhances Huntsman’s specialty chemicals portfolio and market presence in key segments such as coatings and adhesives.

How much did Huntsman pay for Gabriel Performance Products?

Huntsman paid $250 million for the acquisition.

What were Gabriel's revenues prior to the acquisition?

Gabriel reported revenues of approximately $106 million in 2019.

What multiples did Huntsman pay for the acquisition of Gabriel?

The acquisition price reflects an adjusted EBITDA multiple of approximately 11 times, or 8 times when factoring in synergies.

What are the potential risks associated with this acquisition for Huntsman?

Risks include integration challenges, achieving projected synergies, and potential operational disruptions.