Aug 3 2007
Peter R. Huntsman, President and CEO of Huntsman Corporation, today announced that Huntsman and Flint Hills Resources, LP, an independent, wholly owned subsidiary of Koch Industries, Inc., have closed on the sale of Huntsman’s U.S. Polymers business. The parties will close on the sale of Huntsman’s remaining U.S. Base Chemicals business upon the restart of Huntsman’s Port Arthur, Texas, olefins manufacturing facility, commissioning of which is expected to occur later this year.
Huntsman received approximately $350 million at the closing, including the estimated value of associated inventory for its U.S. Polymers business, which remains subject to a post-closing adjustment. Huntsman will retain other elements of working capital, including accounts receivables, accounts payable and certain accrued liabilities, which will be liquidated for cash.
Included in the closing announced today are Huntsman’s manufacturing assets located at four U.S. sites: Odessa and Longview, Texas; Peru, Illinois; and Marysville, Michigan. Huntsman’s amorphous polyalphaolefin (or APAO) products, which Flint Hills will manufacture for Huntsman at the Odessa site under a long-term supply arrangement, are not included in the sale.
“We are delighted to have closed on the sale of our U.S. Polymers business and look forward to completing this strategic divestiture by closing on the sale of our U.S. Base Chemicals business later this year,” said Peter Huntsman. “The associates that have transferred to FHR today are among the finest in our industry, and we are pleased they have joined another world class operator of chemical assets.”
"Today's acquisition is an important step for Flint Hills Resources as we seek opportunities to leverage our capabilities," said Brad Razook, president and chief executive officer of Kansas-based Flint Hills Resources, LP. "With the addition of these polymer production assets and the talented, experienced workforce, we believe we are positioned to create superior value for our customers and continue growing."