Texas-based Huntsman Corp. completed the sale of its $225 million European surfactants business last week to Innospec, Inc.
The business amassed approximately $24 million in earnings before interest, taxes, depreciation and amortization in the previous year. With the proceeds from the sale and cash on hand, Huntsman will pay down its debt early. The $260 million payment continues the company's effort to reduce debt. It had already made early repayments of $100 million in September and $100 million in July.
"By completing the sale of this business, we are executing our plan to focus on businesses within our portfolio with a greater long term strategic fit, while continuing to grow our downstream differentiated businesses," President and CEO Peter Huntsman said. "With the early repayment of another $260 million of debt using proceeds from the sale and existing cash, we have now repaid approximately $550 million of debt in 2016 and significantly strengthened our balance sheet."
Huntsman continues to transform its Performance Products business. It recently took on a polyetheramines expansion in Singapore. While Huntsman sold off the European surfactants business, it retained core products essential to its agrochemicals, lubes and other businesses. As part of the sale agreement, Huntsman can continue marketing some of the surfactant products included in the sale of the business.