Private Equity News & Analysis

Apollo’s $10.6bn bid wins Huntsman(2)

Chemical company Huntsman has terminated its merger agreement with businessman Len Blavatnkik’s firm and accepted a $10.6 billion bid from Apollo.

-

A portfolio company of US buyout firm Apollo Management is to purchase partially-listed US chemical manufacturer Huntsman in a $10.6 billion (€7.7 billion) transaction.

Under terms of the agreement, Hexion Specialty Chemicals will acquire all outstanding Huntsman shares for $28 each in cash. Huntsman also has debts of $3.7 billion.

Huntsman has subsequently terminated a previous buyout agreement with Basell, a plastics company owned by Russian billionaire Len Blavatnik’s Access Industrial Holdings. Hexion and Huntsman will each pay half of the $200 million break-up fee to Basell.

Chemical companies around the globe have received increased attention in past weeks from private equity firms. CVC Capital Partners led a consortium in the €1.5 billion purchase of Dutch firm Univar, and also paid €800 million for Belgian chemical company Taminco, while The Blackstone Group is reportedly interested in purchasing a $400 million stake in a Chinese government-owned petrochemicals company.