Huntsman Corporation (The Woodlands, Texas, USA) entered into an agreement to acquire Gabriel Performance Products (Akron, Ohio, USA), a specialty chemical manufacturer of additives and epoxy curing agent for the coatings, adhesives, sealant, and composite end markets.
The agreement stipulates that Huntsman will pay $250 million, subject to customary closing adjustments, in an all-cash transaction from available liquidity. The transaction is expected to close in the first quarter of 2021 after regulatory approvals.
“The acquisition of Gabriel Performance Products broadens the offering in our specialty portfolio and is complementary to our recent acquisition of CVC Thermoset Specialties,” says Scott Wright, president of Huntsman's advanced materials division. “Gabriel makes highly specialized toughening and curing agents and other additives used in a wide range of composite, adhesive and coatings applications. We expect that the Gabriel business will strengthen our North America footprint and provide significant commercial synergies as we expand and globalize their specialty products across our global footprint and customer base. The acquisition will further enhance our competitiveness and our world class formulations business by improving our ability to create differentiation in our customers' applications.”
“With this acquisition we conclude a series of strategic initiatives in our Advanced Materials division we started in 2019 before the COVID-19 pandemic,” adds Peter Huntsman, company chairman, president, and CEO. “Our initial intent was to complete the acquisitions of Gabriel and CVC simultaneously, together with the divestiture of our India DIY business earlier this year. Despite the challenges created by COVID, I am pleased that we have already closed on two of the transactions and intend to close on the acquisition of Gabriel within the first quarter of 2021.”
In 2019, Gabriel accrued revenues of approximately $106 million. The company has three manufacturing facilities located in Ashtabula, Ohio, Harrison City, Pennsylvania, and Rock Hill, South Carolina.
Source: Huntsman Corporation, www.huntsman.com.