India: Management Decision Huntsman to Sell DIY Consumer Adhesives Business in India to Pidilite
Huntsman has plans to sell its Do-It-Yourself (DIY) consumer adhesives business in India to Pidilite Industries for 285 million dollars. Under the terms of the agreement, Huntsman will receive 257 million dollars in cash at closing and up to 28 million dollars of additional cash within 18 months if the business achieves sales revenue in-line with 2019.
Texas/USA – Huntsman Corporation has recently announced that it has entered into a definitive agreement to sell its India based Do-It-Yourself (DIY) consumer adhesives business, part of the Advanced Materials division, to Pidilite Industries in an all-cash transaction valued at up to 285 million dollars, excluding customary working capital and other adjustments.
The transaction value represents a 2019 adjusted Ebitda multiple of approximately 15 times. Under the terms of the agreement, Huntsman will receive approximately 257 million dollars in cash at closing and up to approximately 28 million dollars of additional cash under an earnout within 18 months if the business achieves sales revenue in-line with 2019. The transaction is expected to close soon.
Peter Huntsman, Chairman, President and CEO commented: "We have taken this business and built it from almost nothing to be a market leader in India. To take it to the next level of size and value, we simply do not have the footprint in India to do so. Pidilite is a respected leader in consumer adhesives within India and is in a better position to invest in and more aggressively grow this consumer DIY business over the coming years. We anticipate within the coming months that we will be able to deploy the proceeds from this asset and replace the lost Ebitda with other growth assets that fit even better within our core Advanced Materials specialty business."