ARCHROMA TO ACQUIRE THE TEXTILE EFFECTS BUSINESS OF HUNTSMAN CORPORATION

Archroma, a global leader in sustainable specialty chemicals and solutions and a portfolio company of U.S.-based private investment firm SK Capital Partners (“SK Capital”), today announced it has entered into a definitive agreement to acquire the Textile Effects business (“Textile Effects”) from Huntsman Corporation.

Since its formation in 2013, through a series of mergers & acquisitions, as well as internal investments in R&D, manufacturing and service capabilities, Archroma has been building a comprehensive portfolio of solutions to serve the emerging needs of the textile industry.

The combination with Textile Effects and its rich historical roots of Huntsman and Ciba Specialties will create a technology powerhouse that will include Archroma’s legacy heritages of Sandoz, Hoechst, Clariant, BASF and Dohmen who have been at the cutting edge of the textile industry for decades, and together will continue to serve customers for years to come.

Both Archroma and Textile Effects are founding members of Sustainable Chemistry for the Textile Industry (SCTI), an alliance of leading chemical companies that strives to empower the textile and leather industries to apply sustainable, state-of-the-art chemistry solutions that protect factory workers, local communities, consumers and the environment.

Both companies have been recognized by the industry and are each recipient of multiple awards for supplying sustainable systems and solutions in dyes and chemicals that enable fashion brands, retailers, and textile manufacturers to create articles that are better for consumers and the planet.

“I am  thrilled to see the combination of Huntsman Textile  Effects and Archroma ”, said Barry Siadat, Co-founder of SK Capital Partners and Chairman of Archroma. “Finally, we have achieved a dream of combining the  technologies, products and capabilities of the legacy pioneers of the  textile industry, namely Ciba, Sandoz, Hoechst  and BASF, into a modern  and cohesive enterprise that is focused  on delivering innovative and sustainable systems  and solutions to serve the evolving needs of today’s  textile industry .”

“We at  Archroma are so very excited to announce what we see as a merger of equals ”, comments Heike van de Kerkhof, CEO of Archroma. “With this agreement, two committed leaders  in sustainable and innovative solutions  unite to pave the way towards a more sustainable textile industry. We are delighted  to welcome a team of highly talented

people”, adds Heike van de Kerkhof. “Innovative and transformative leadership is not built overnight, and we are eager to work together  with the people who made that happen at Huntsman  Textile Effects.”

“The combination of Archroma and Textile Effects  is transformational, bringing  together two highly complementary organizations with strong cultures  of innovation and a shared commitment to inspire advancements in the textile  industry. We are excited by what we will be able to achieve together.  At a time when we are seeing robust growth trends in sustainability, the merger will position us firmly to accelerate growth  and drive significant

value for our customers, employees, and stakeholders ,” said Rohit Aggarwal, President of Huntsman Textile Effects.

Closing of the transaction is subject to customary conditions and approvals and is expected to take place in the first half of 2023. Citi served as financial advisor to Archroma. Latham & Watkins LLP provided corporate legal advice and Kirkland & Ellis LLP provided financing legal advice to Archroma. BofA Securities served as Huntsman Corporation’s financial advisor and Kirkland & Ellis LLP acted as their legal counsel.

+INFO: https://www.archroma.com/