Huntsman has signed a $300 million deal to buy CVC Thermoset Specialties, a specialty chemical manufacturer that supplies chemicals for the industrial composites, adhesives and coatings markets.
The $300 million purchase price is subject to customary closing conditions. It is an all-cash transaction, funded from available liquidity by Huntsman.
Depending on the full year of 2019, the purchase price reflects an estimated EBITDA multiple of about ten times.
This deal is expected to close mid-2020.
“The acquisition of CVC Thermoset Specialties brings valuable complementary technology breadth to our Advanced Materials portfolio and its unique products will make systems using our class-leading epoxy-based materials even tougher, stronger, and more durable,” said Huntsman’s Advanced Materials division president Scott Wright.
“This business manufactures highly specialised toughening, curing and other additives used in a wide range of composite, adhesive and coatings applications across aerospace, automotive and industrial markets,” he added.
Huntsman said it would use its current asset base and routes to market in Europe and Asia, in addition to improving its role in North America, with the goal of extending and globalizing the complementary product range of CVC Thermoset Specialties.
CVC Thermoset Specialties is part of Emerald Performance Materials, which is wholly owned by American Securities affiliates.
The company has two production facilities based in Akron, Ohio and Maple Shade, New Jersey, with annual sales of about $115 million.