Archroma said it entered into an agreement to acquire the Textile Effects business of Huntsman Corp.
The terms of the deal were not disclosed, but the company expects it to close in the first half of 2023. Archroma said Citi served as its financial adviser while Latham & Watkins LLP provided corporate legal advice and Kirkland & Ellis LLP provided financing legal advice. BofA Securities served as Huntsman Corp.’s financial adviser, and Kirkland & Ellis LLP acted as their legal counsel.
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“The combined company will continue to lead the textile industry in sustainability, innovation and performance offering fashion brands, automotive, technical and home textiles the best-in-class cost performance whilst respecting natural resources and the planet,” the company said in a statement.
Archroma is a portfolio company of U.S.-based private investment firm SK Capital Partners.
Archroma said in a statement that since it formed in 2013, through a series of mergers and acquisitions, as well as internal investments in research and development, manufacturing and service capabilities, the company “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.”
Archroma also noted that it and Textile Effects are founding members of Sustainable Chemistry for the Textile Industry, which is 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 have received 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, Archroma said.
Barry Siadat, cofounder of SK Capital Partners and chairman of Archroma, said he was “thrilled to see the combination of Huntsman Textile Effects and Archroma,” said Barry Siadat. “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.”
Heike van de Kerkhof, chief executive officer of Archroma, said with this deal, “two committed leaders in sustainable and innovative solutions unite to pave the way toward a more sustainable textile industry” and also noted that 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.”
Rohit Aggarwal, president of Huntsman Textile Effects, said the combined companies bring together “two highly complementary organizations with strong cultures of innovation and a shared commitment to inspire advancements in the textile industry.”
“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,” Aggarwal added.