With an aim of diversifying its specialty chemical portfolio, Huntsman Chemicals, a US based manufacturer of chemical products has confirmed the acquisition of Gabriel Performance Products based in North America. As per the terms in the agreement, Huntsman is subjected to pay USD 250 million under the customary closing adjustments.
The transaction is anticipated to achieve final completion after 2021 following all the regulatory approvals. Gabriel has three manufacturing units in Ohio, South Carolina, and Pennsylvania. In support of the acquisition, President of Huntsman’s Advanced Material division said that the agreement will allow the company to diversify its specialty chemical business and would hence compliment Huntsman earlier purchase of CVC Thermoset Specialties. Other authorities of Huntsman further commented that with the acquisition of Gabriel Performance Products, they are pleased to have achieved their strategic initiatives despite the Coronavirus uncertainties.
The specialty chemical business of Gabriel will provide sufficient synergies for Huntsman to strengthen its foothold in the global market. ChemAnalyst predicts that the agreement will serve the company to increase its competitiveness in the global market in line with the world class formations and advanced methods for material differentiation.