HUNTSMAN TO ACQUIRE FOUR MAJOR BUSINESSES FROM IMPERIAL CHEMICAL INDUSTRIES (ICI)
Expand Global Reach
FOR IMMEDIATE RELEASE April 15, 1999 CONTACT: Don Olsen (801) 584-5700
London - Jon M. Huntsman, Chairman and CEO of <%=company%>, today announced that Huntsman has signed an agreement to acquire four major businesses from Imperial Chemical Industries (ICI) of London for $2.8 billion. The new acquiring company will be named Huntsman/ICI, LLC.
Under terms of the agreement, Huntsman will purchase ICI's polyurethanes business, with its three manufacturing sites at Wilton, UK, Rozenburg in the Netherlands and Geismar, Louisiana; the ICI titanium dioxide business, including companies in North America, Europe, Malaysia and South Africa; the ICI aromatics business; and ICI's share of Olefins production from the cracker at Wilton, Teesside. Huntsman also has an interest in purchasing ICI's acrylics business.
The businesses carry with them leading global market and technology positions.
Huntsman, North America's largest privately held chemical company, is a global leader in the production and marketing of a variety of petrochemical products for the chemical, plastics, automotive, detergent, personal care, high-tech, health care and packaging industries. Its product portfolio includes olefins, performance chemicals, surfactants, maleic anhydride, propylene oxide, ethylene glycol, performance polymers, polyethylene, polypropylene and packaging.
The acquisition is the single largest in Huntsman's history. It will: increase its annual revenues to more than $7.5 billion; increase its production capacity by 8.7 billion pounds, to a total of more than 28 billion pounds; increase its number of employees by approximately 7,000 to a total of more than 16,000; give the company a major presence in 11 additional countries; and add polyurethanes, titanium dioxide and paraxylene to its product portfolio.
Mr. Huntsman commented, "This acquisition nearly doubles the size of our existing company and significantly increases our overall global presence, particularly in Europe. ICI is one of the world's truly great companies, with a reputation for quality that is exemplary in every way. We are anxious, now, to build on the tradition of excellence that ICI has established."
Mr. Charles Miller Smith, Chief Executive of ICI, commented, "Huntsman Corporation has a proven record of integrating, managing and growing its many successful acquisitions. The businesses which we are selling have leading market positions, good management and a strong record of achievement. We couldn't be more confident about this transaction and strongly believe the customers and employees will prosper under Huntsman ownership."
The companies expect the transaction to close in the summer of 1999.
Polyurethane product applications include efficient building insulation, energy saving refrigeration insulation, furniture and automotive seat cushioning, carpet backing, and bedding. Other applications include the soles of athletic shoes and other footwear, durable surfaces such as countertops, industrial adhesives, and construction materials.
Titanium dioxide is used primarily in the production of colorants to make paint and colored plastics brighter, and to make paper whiter.
Aromatics are used in the production of commodity and performance chemicals for a variety of plastics and consumer products. Ethylene, the primary product in the ICI petrochemical business, is the chemical industry's most basic building block. It is the base chemical in virtually all consumer products utilizing chemicals and plastics.
Huntsman completed its first major divestiture on December 31, 1998, selling its global styrenics business - with annual sales of approximately $1 billion - to NOVA Chemical Company.
ICI, with headquarters in London, was founded in 1926 and is one of Europe's most recognized and admired companies. Among the world's largest chemical companies, it enjoys leading international positions in the production of industrial and specialty chemicals. ICI has 33,000 employees and had 1998 revenues of $15 billion.
HUNTSMAN ICI HOLDINGS TO ACQUIRE 100% OF WILTON OLEFINS CRACKER
FOR IMMEDIATE RELEASE June 1, 1999 CONTACT: Don H. Olsen (801) 584-5700
SALT LAKE CITY, UT - Peter R. Huntsman, President and Chief Operating Officer of Huntsman ICI Holdings (HICI), today announced that HICI has signed an agreement in principle to purchase 100% of the olefins cracker at Wilton, Teesside. Imperial Chemical Industries (ICI) currently owns 80% of the cracker and BP Amoco owns 20%.
The cracker has a total annual capacity of 865,000 tons of ethylene and 400,000 tons of propylene.
Mr. Huntsman commented, "This acquisition gives us total control of one of the world's largest and most versatile olefins production facilities. It is a major breakthrough for Huntsman ICI in increasing our ethylene and propylene position in Europe, and in laying a stronger foundation for the building of our intermediate and specialty chemicals businesses."
Mr. Huntsman said the purchase includes a long-term agreement for BP Amoco to continue as a major customer of ethylene and by-products from the cracker. "We are pleased to be entering into this close working relationship with BP Amoco," he said. "We trust that it will be the first of many agreements that we and BP Amoco will enjoy."
Huntsman Corporation and Imperial Chemical Industries (ICI) formed HICI in April to acquire ICI's polyurethanes, titanium dioxide, petrochemical and aromatics businesses. Huntsman will own 70% of the new company and ICI will own 30%. Mr. Huntsman said HICI and BP Amoco expect to finalize the purchase of the cracker during the summer, concurrent with HICI's purchase of the ICI businesses.
FOR IMMEDIATE RELEASE May 4, 1999 CONTACT: Kelly A. McKibbin (801) 584-5700
HUNTSMAN CORPORATION ACQUIRES RHODIA'S POLYOL BUSINESS
SALT LAKE CITY, UT --- Peter R. Huntsman, President and Chief Operating Officer of Huntsman Corporation, today announced that Huntsman has completed the acquisition of Rhodia's performance polyether polyol business.
Huntsman will manage all aspects of the business, including order processing, technical service, new product development, sales and general inquires. Rhodia will continue to manufacture the polyols at their plant in Mississauga, Ontario, for supply to Huntsman through 1999. Huntsman then will transfer production to its manufacturing facilities at Conroe, Texas.
Mr. Huntsman stated, "This acquisition complements our recently announced purchase of Imperial Chemical Industries' (ICI) global polyurethane business. These two acquisitions, together with our existing polyols and urethane catalysts businesses, give Huntsman a strong position as a world supplier to the polyurethane markets."
William Kennedy, Huntsman Corporation -Vice President of Performance Chemicals, commented, "Huntsman is a long-term supplier to the polyurethane industry. This strategic acquisition allows us to add a full range of sucrose, sorbitol, glycerine and mannich based polyols to our existing JEFFOLTM Polyol, JEFFCAT® Urethane Catalyst and JEFFAMINE® Polyoxyalkyleneamines businesses."
Huntsman's JEFFOLTM Polyols are used primarily in the construction and building industries for efficient insulation in roofs, wall cavities, and flooring. The polyether polyols in the business acquired from Rhodia are used in a wide range of rigid polyurethane applications, including energy saving refrigeration insulation, industrial sealants, and construction and building materials.
Huntsman Corporation is the USA's largest privately held chemical company. Its operating companies manufacture basic products for the chemical, plastics, detergent, personal care, rubber and packaging industries. Originally known for pioneering innovations in packaging, and later, rapid and integrated growth in petrochemicals, Huntsman-held companies today have revenues exceeding $4.0 billion from multiple locations worldwide.