Huntsman ( NYSE: HUN ) said it agreed to sell its Textile Effects division to SK Capital Partners portfolio company Archroma for a total enterprise value of $718M, which includes the assumption of $125M in net underfunded pension liabilities.
Huntsman ( HUN ) said the deal will be partially funded with preferred equity, of which it will take as much as $80M, an amount SK Capital will seek to syndicate prior to the deal closing.
The Textile Effects division reported sales of $772M and adjusted EBITDA of $94M during the 12 months ended June 30.
"We expect the cash proceeds from this divestiture to be deployed in-line with our current balanced capital allocation program which includes strategic investments and acquisitions to further strengthen our core businesses as well as returning cash to shareholders through both our dividend and share repurchase program," the company said.
Huntsman ( HUN ) recently reported Q2 GAAP earnings of $1.28/share on revenues of $2.36B .
For further details see:
Huntsman to sell Textile Effects division in $718M deal