Huntsman Corporation (NYSE: HUN) today announced that the company has entered into a definitive agreement to acquire the chemicals business of Laffans Petrochemicals Ltd.
Located in Ankleshwar, India the Laffans chemicals business manufactures amines and surfactants. The chemicals business has 130 employees and annual sales of approximately $45 million. The acquisition is subject to certain terms and conditions and is expected to occur in the first half of 2011. The Laffans chemicals business will be integrated into the Performance Products division and is expected to be immediately accretive to earnings.
Commenting on the transaction, Daniele Ferrari, President of the Performance Products Division, said, "In addition to the recently announced expansion of our polyetheramine facility in Singapore, the acquisition of this business is strategically important as we look to meet the rapid growth in demand for other amines within Asia. A stronger manufacturing presence in India will enable us to better support our customers and their growth specifically within the Indian economy. This acquisition will bring total annual Huntsman Corporation sales in India to approximately $260 million or 3% of total sales. The Laffans chemical business is complementary to our existing technology and product offering and introduces exciting potential for additional product development."