Archroma Makes Major Acquisition

Archroma to Acquire Huntsman Corporation's Textile Effects Business Archroma, a portfolio company of US-based private investment firm SK Capital Partners ("SK Capital") and a leader in sustainable specialty chemicals and solutions, announced that it has entered into a definitive agreement to acquire the Textile Effects business unit from Huntsman Corporation. Since its founding in 2013, Archroma has built a comprehensive solution portfolio to serve the emerging needs of the textile industry through a series of mergers and acquisitions as well as internal investments in R&D, manufacturing and service capabilities. The combination of Textile Effects and Huntsman and Ciba Specialties, which have rich historical roots, will create a technology powerhouse for Archroma that will encompass legacies from Sandoz, Hoechst, Clariant, BASF and Dohmen—companies that have been at the forefront of the textile industry for decades—and together will continue to serve customers in the years ahead. Both Archroma and Textile Effects are founding members of Sustainable Chemistry for the Textile Industry (SCTI), an alliance of leading chemical companies working to empower the textile and leather industries to implement sustainable, state-of-the-art chemistry solutions that protect factory workers, local communities, consumers and the environment. Both companies are recognized by the industry and each holds numerous awards for providing sustainable systems and solutions in dyes and chemicals that enable fashion brands, retailers and textile manufacturers to create better products for consumers and the planet. Barry Siadat, Founding Partner of SK Capital Partners and Chairman of Archroma's Board of Management, said, "I am excited to see the combination of Huntsman Textile Effects and Archroma." "Ultimately, we have realized the dream of combining the technologies, products and capabilities of the textile industry's historic pioneers such as Ciba, Sandoz, Hoechst and BASF into a modern and harmonized organization focused on delivering innovative and sustainable systems and solutions to serve today's textile industry's evolving needs." Heike van de Kerkhof, CEO of Archroma, says, "As Archroma, we are very excited to announce what we view as an integration of equals. With this transaction, two committed leaders in sustainable and innovative solutions are coming together to pave the way towards a more sustainable textile industry. We are delighted to welcome a team of highly talented individuals" and added, "Innovative and transformational leadership is not built overnight and we are eager to work with the people at Huntsman Textile Effects who have made this a reality." Rohit Aggarwal, President of Huntsman Textile Effects, said, "The combination of Archroma and Textile Effects is transformational, bringing together two great organizations that complement each other with strong innovation cultures and a shared commitment to inspiring advances in the textile industry. We are excited about what we can achieve together. At a time when we are seeing strong growth trends in sustainability, the merger will position us solidly to accelerate growth and deliver meaningful value for our customers, employees and stakeholders," he said. Closing of the transaction is subject to customary conditions and approvals and is expected to occur in the first half of 2023. Citi provided financial advisory services to Archroma. Latham & Watkins LLP provided corporate legal counsel and Kirkland & Ellis LLP provided financing legal advice to Archroma. BofA Securities acted as financial advisor to Huntsman Corporation and Kirkland & Ellis LLP acted as legal counsel. Source