9 Aug 2022
Archroma to acquire the Textile Effects business of Huntsman Corporation
- The combined company will continue to lead the textile industry in sustainability, innovation, and performance offering fashion brands, automotive, technical and home textiles the best-in-class cost performance whilst respecting natural resources and the planet
Pratteln, Switzerland, 9 August 2022 - Archroma, a global leader in sustainable specialty chemicals and solutions and a portfolio company of U.S.-based private investment firm SK Capital Partners (“SK Capital”), today announced it has entered into a definitive agreement to acquire the Textile Effects business (“Textile Effects”) from Huntsman Corporation.
Since its formation in 2013, through a series of mergers & acquisitions, as well as internal investments in R&D, manufacturing and service capabilities, Archroma has been building a comprehensive portfolio of solutions to serve the emerging needs of the textile industry. The combination with Textile Effects and its rich historical roots of Huntsman and Ciba Specialties will create a technology powerhouse that will include Archroma’s legacy heritages of Sandoz, Hoechst, Clariant, BASF and Dohmen who have been at the cutting edge of the textile industry for decades, and together will continue to serve customers for years to come.
Both Archroma and Textile Effects are founding members of Sustainable Chemistry for the Textile Industry (SCTI), an alliance of leading chemical companies that strives to empower the textile and leather industries to apply sustainable, state-of-the-art chemistry solutions that protect factory workers, local communities, consumers and the environment.
Both companies have been recognized by the industry and are each recipient of multiple awards for supplying sustainable systems and solutions in dyes and chemicals that enable fashion brands, retailers, and textile manufacturers to create articles that are better for consumers and the planet.
“I am thrilled to see the combination of Huntsman Textile Effects and Archroma”, said Barry Siadat, Co-founder of SK Capital Partners and Chairman of Archroma. “Finally, we have achieved a dream of combining the technologies, products and capabilities of the legacy pioneers of the textile industry, namely Ciba, Sandoz, Hoechst and BASF, into a modern and cohesive enterprise that is focused on delivering innovative and sustainable systems and solutions to serve the evolving needs of today’s textile industry.”
“We at Archroma are so very excited to announce what we see as a merger of equals”, comments Heike van de Kerkhof, CEO of Archroma. “With this agreement, two committed leaders in sustainable and innovative solutions unite to pave the way towards a more sustainable textile industry. We are delighted to welcome a team of highly talented people”, adds Heike van de Kerkhof. “Innovative and transformative leadership is not built overnight, and we are eager to work together with the people who made that happen at Huntsman Textile Effects.”
“The combination of Archroma and Textile Effects is transformational, bringing together two highly complementary organizations with strong cultures of innovation and a shared commitment to inspire advancements in the textile industry. We are excited by what we will be able to achieve together. At a time when we are seeing robust growth trends in sustainability, the merger will position us firmly to accelerate growth and drive significant value for our customers, employees, and stakeholders,” said Rohit Aggarwal, President of Huntsman Textile Effects.
Closing of the transaction is subject to customary conditions and approvals and is expected to take place in the first half of 2023. Citi served as financial advisor to Archroma. Latham & Watkins LLP provided corporate legal advice and Kirkland & Ellis LLP provided financing legal advice to Archroma. BofA Securities served as Huntsman Corporation’s financial advisor and Kirkland & Ellis LLP acted as their legal counsel.
© 2022 Archroma
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Notes for editors
About Archroma
Archroma is a global, diversified provider of specialty chemicals serving the branded and performance textiles, packaging and paper, and coatings, adhesives and sealants markets.
Headquartered in Pratteln, Switzerland, Archroma operates in over 100 countries, with 2,800 employees located in 31 countries and with 25 production sites.
Archroma is passionate about delivering leading and innovative solutions, enhancing people’s lives and respecting the planet. The company is committed to the principles of "The Archroma Way to a Sustainable World: Safe, Efficient, Enhanced. It's our nature!"; an approach reflected in its innovations, world-class quality standards, high service levels and cost-efficiency.
About Huntsman Corporation
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2021 revenues of approximately US$8 billion. Their chemical products number in the thousands and are sold worldwide to manufacturers serving a broad and diverse range of consumer and industrial end markets. They operate more than 70 manufacturing, R&D and operations facilities in approximately 30 countries and employ approximately 9,000 associates within their four distinct business divisions. For more information about Huntsman, please visit the company's website at www.huntsman.com.
About Huntsman Textile Effects
Huntsman Textile Effects is a leading global provider of high quality dyes, chemicals and digital inks to the textile and related industries. With operations in more than 90 countries and six primary manufacturing facilities in six countries (China, Germany, India, Indonesia, Mexico and Thailand), Huntsman Textile Effects is uniquely positioned to provide prompt and expert technical service wherever their customers are based. Sustainability, innovation and collaboration are at the heart of what they do. They use cutting edge technology to develop solutions and create innovative products with intelligent effects such as durable water repellents, color fastness, sun protection or state-of-the-art dyes which reduce water and energy consumption. For more information about Huntsman Textile Effects, please visit www.huntsman.com/textile_effects.
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