Huntsman & Clariant To Combine In All-stock Merger Of Equals - Quick Facts

(RTTNews) - Huntsman Corp. (HUN) and Clariant (CLZNY.PK, CRN.L, CLZNF.PK) announced their Boards approved an agreement to combine in a merger of equals through an all-stock transaction. The merged company will be named HuntsmanClariant. Clariant shareholders will own 52%, and Huntsman shareholders will own 48% of HuntsmanClariant. Huntsman shareholders will receive 1.2196 shares in HuntsmanClariant for each Huntsman share. The transaction is targeted to close by year end 2017.

The combined company, incorporated in Switzerland, will be governed by a Board of Directors with equal representation from Clariant and Huntsman. Hariolf Kottmann, current Clariant CEO, shall become Chairman of the Board of HuntsmanClariant. Peter Huntsman, current Huntsman President and CEO, will become CEO of HuntsmanClariant. The combined company will be listed on the SIX Swiss Exchange and the New York Stock Exchange. The previously announced IPO of Huntsman's Pigments and Additives business will continue as planned in summer 2017.

On a pro forma 2016 basis, the combination of both companies will create a global specialty chemical company with sales of approximately $13.2 billion, an adjusted EBITDA of $2.3 billion and a combined enterprise value of approximately $20 billion. The combined company expects to realize more than $3.5 billion of value creation from approximately $400 million in annual cost synergies. The targeted synergies represent roughly 3 percent of total combined 2016 revenue with one-time costs up to $500 million.