Huntsman Acquires Gabriel Performance Products

Huntsman Corporation (NYSE: HUN), a North American specialty chemical manufacturer producing specialty additives and epoxy curing agents for coatings, adhesives, sealants and composite end markets, announced the signing of an agreement to acquire Gabriel Performance Products, owned by funds affiliated with Audax Private Equity. Under the terms of the agreement, Huntsman will pay USD 250 million in an all-cash transaction financed from existing liquidity, subject to customary closing adjustments. Gabriel, operating three manufacturing facilities located in Ashtabula, Ohio; Harrison City, Pennsylvania; and Rock Hill, South Carolina, generated approximately USD 106 million in 2019 revenues. Based on 2019 calendar year results, the purchase price represents an adjusted EBITDA multiple of approximately 11x, or approximately 8x on a proforma basis after synergies. The transaction is expected to close in the first quarter of 2021, following regulatory approvals.

Scott Wright, President of Huntsman's Advanced Materials division, commented on the acquisition: "The acquisition of Gabriel Performance Products expands our specialty portfolio offerings and completes our recent acquisition of CVC Thermoset Specialties. Gabriel produces highly specialized curing and hardening agents and other additives used across a wide range of composite, adhesive and coating applications. We expect Gabriel to strengthen our North America footprint and deliver significant commercial synergies as we expand and globalize our specialty products across our global footprint and customer base. This acquisition will enhance our ability to create differentiation in our customers' applications, further strengthening our competitiveness and world-class formulation business."

  Peter Huntsman, President and CEO, added: "With this acquisition, we have completed a series of strategic initiatives within our Advanced Materials division. Our primary objective was to close the acquisitions of Gabriel and CVC simultaneously, along with the divestiture of our India DIY business, which occurred earlier this year. Despite the challenges created by COVID, we are pleased that we have already closed both transactions and plan to finalize Gabriel's acquisition in the first quarter of 2021. We have significantly strengthened our Advanced Materials portfolio and expanded the offerings we bring to market. Based on 2019 results, as we net the three transactions together, we added approximately USD 57 million in adjusted EBITDA proforma synergies to our Advanced Materials division at less than a 5x EBITDA multiple."