Huntsman Acquires CVC Thermoset Specialties

Huntsman has announced it has reached an agreement to purchase CVC Thermoset Specialties, a North American speciality chemical manufacturer serving the industrial composites, adhesives and coatings markets.

Under terms of the agreement, Huntsman will pay $300 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity.  Based on full-year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 10 times, or between approximately 7 to 8 times pro forma for synergies, the lower multiple end being dependent upon normal growth market conditions.  The transaction is expected to close around midyear of 2020.

Founded in 1982, the company manufacture speciality products for high-performance thermoset systems including epoxy resins, reactive liquid polymers, epoxy-functional reactive modifiers, elastomer modified epoxy resins and curing agents, catalysts and accelerators.

In these uncertain times, our financial strength will allow us to keep looking for these types of acquisitions, while at the same time maintain a conservative balance sheet and opportunistically repurchase shares

Peter Huntsman, Chairman, President and CEO

With manufacturing facilities in Akron, Ohio, and Maple Shade, New Jersey CVC Thermoset Specialties has annual revenues of approximately $115 million. Under terms of the agreement, Huntsman will pay $300 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Based on full-year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 10 times, or between approximately 7 to 8 times pro forma for synergies, the lower multiple ends being dependent upon normal growth market conditions.  The transaction is expected to close around midyear of 2020.

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