Huntsman To Sell US Business To Koch Subsidiary
The Woodlands, Texas-based chemicals manufacturer and marketer Huntsman Corp. has agreed to sell
its US Base Chemicals and Polymers business to Koch Industries Inc. subsidiary Flint Hills
Resources LLC (FHR) — a Wichita, Kan.-based producer of fuels, base oils for lubricants and other
petrochemical products — for approximately $761 million.
The US Base Chemicals and Polymers business employs some 900 associates. The deal includes Huntsman’s olefins and polymers manufacturing assets located at five US facilities in Texas, Michigan and Illinois. The company will retain its Port Neches, Texas, facility, location of its Performance Products division and the captive ethylene unit, which will receive ethylene and propylene from Flint Hills and provide feedstock for Huntsman’s downstream derivative units.
According to Peter R. Huntsman, president and CEO, Huntsman Corp., the sale is part of Huntsman’s strategy to divest its commodity petrochemical businesses and focus on the manufacture and marketing of differentiated products — which serve such diverse industries as chemicals, textiles, footwear, automotive, aviation, paints and coatings, and furniture, among others.
“Our entire product line will now experience higher growth rates and much lower sensitivity to energy costs,” Huntsman said. “Looking forward, we have transformed our business into one producing highly innovative products that serve an expanding global economy.”
“The assets, skills and capabilities of this operation will complement FHR’s existing framework,” said Jeff Ramsey, vice president of chemicals, FHR, “We are acquiring an experienced team, a robust technical service and development capability, and a global customer service function that is focused on creating value.”
Ramsey will manage the business once the acquisition is complete, which is expected during the third quarter of 2007.