Archroma, a global leader in sustainable specialty chemicals and solutions and a portfolio company of US-based private investment firm SK Capital Partners have entered into a definitive agreement to acquire the Textile Effects business (“Textile Effects”) from Huntsman Corporation.
Closing of the transaction is subject to customary conditions and approvals and is expected to take place in the first half of 2023.
Citi served as financial advisor to Archroma. Latham & Watkins LLP provided corporate legal advice and Kirkland & Ellis LLP provided financing legal advice to Archroma.
In a statement, Archroma said that 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 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.
Both Archroma and Textile Effects are founding members of Sustainable Chemistry for the Textile Industry (SCTI), 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.
Barry Siadat, Co-founder of SK Capital Partners and Chairman of Archroma, said “I am thrilled to see the combination of Huntsman Textile Effects and Archroma. 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.”
“We at Archroma are so very excited to announce what we see as a merger of equals,” comments Heike van de Kerkhof, CEO of Archroma. “With this agreement, two committed leaders in sustainable and innovative solutions unite to pave the way towards a more sustainable textile industry. We are delighted to welcome a team of highly talented people,” adds Heike van de Kerkhof. “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.”
