Huntsman is selling its India based Do-It-Yourself (DIY) consumer adhesives business, part of the Advanced Materials division, to Pidilite Industries.
Under the terms of the agreement, Huntsman will receive approximately US$257M (€217M) in cash at closing and up to approximately US$28M (€24M) of additional cash within 18 months, if the business achieves sales revenue in-line with 2019.
Peter Huntsman, Chairman, President and CEO 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. We anticipate within the coming months that we will be able to deploy the proceeds from this asset and replace the lost EBITDA with other growth assets that fit even better within our core Advanced Materials speciality business."