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Huntsman close to wrapping up Ciba unit buyout

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C H Unnikrishnan Mumbai
Last Updated : Jun 14 2013 | 5:10 PM IST
Huntsman Advance Material India's proposed acquisition of the entire textile effects business of Ciba Specialty Chemicals for Rs 165 crore will be concluded by 10 days.
 
The acquisition is part of a global deal wherein Huntsman Corporation will acquire Ciba Specialty Chemicals Inc's textile chemicals business for $253 million (nearly Rs 1,140 crore).
 
Senior sources in Huntsman AM India said the textile effects business of Ciba India would be part of Huntsman Advance Material India from July 1. Ciba Specialty Chemicals India's board will meet tomorrow to decide on the final procedures on the transaction.
 
Gimmi Billimoria, managing director, Ciba Specialty Chemicals India, told Business Standard that more clarity on the final transfer of business would emerge in the board meeting.
 
The total textile effects business of Ciba in India is pegged at Rs 300 crore. The textile effects business divestment of Ciba includes its 100 per cent subsidiary""Diamond Dye-Chem as well. While Ciba India's textile chemical business was valued at Rs at Rs 122.5 crore, its subsidiary Diamond Dye-Chem was sold for Rs 43 crore.
 
In March this year, Huntsman Corporation had signed an agreement to acquire the global textile effects business of Ciba Specialty Chemicals for $253 million.
 
Ciba's textile effects business involves chemicals and dyes that enhance textile performance and appearance. Based in Basel, Switzerland, the unit has about 4,200 employees and posted 2005 revenue of about $1 billion, which is about 17 per cent of Ciba's total revenue.
 
This is Huntsman's second acquisition of a Ciba business. In 2003, Huntsman acquired Vantico Group SA, which was formerly Ciba's performance polymers unit.
 
The purchase price of $253 million will be reduced by about $57 million in assumed debt and unfunded pension and other post employment liabilities and $31 million in unspent restructuring costs, according to a Huntsman news release.
 
As part of its global restructuring, Ciba agreed to sell its worldwide textile effects business to Huntsman Corporation.
 
While, the Rs 1000 crore Huntman Advance Material India is currently a leading palyer in the country's specialty chemicals business catering to construction, automobile, paints and adhesive segments. Its Chennai facility currently makes advance material for its global market as well as formulated products for the local market.
 
Ciba Specialty Chemicals India had recently signed a joint venture agreement with the Virchow Group, Hyderabad, for the production of high quality Triclosan, a long-lasting antimicrobial ingredient, used in a variety of products including toothpaste, soap, deodorants and non-cosmetic articles such as shower curtains and technical textiles.
 
Headquartered in Mumbai, the company is engaged in the manufacturing, trading and marketing of a wide range of specialty chemicals. The company has its manufacturing facilities at Goa and Ankleshwar. Inset item

 
 

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First Published: Jun 21 2006 | 12:00 AM IST

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