Pidilite acquires consumer adhesives from Huntsman for $285 million
Texas, US-based Huntsman Corporation announced last week that it has entered into a definitive agreement to sell its India based Do-It-Yourself (DIY) consumer adhesives business to Pidilite Industries in an all-cash transaction valued at up to $285 million, 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 in cash at closing and up to approximately $28 million of additional cash under an earnout within 18 months if the business achieves sales revenue in-line with 2019. The consumer adhesives business is a part of Huntsman’s Advanced Materials division, and includes the popular brand Araldite. The transaction is expected to close within the coming week.
Peter Huntsman, Chairman, President and CEO of Huntsman Corp, 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."
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated and specialty chemicals with 2019 revenues of approximately $7 billion.