Huntsman Corporation has announced its agreement to acquire Gabriel Performance Products from funds owned by Audax Private Equity. Gabriel Performance Products is a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, composite, adhesives and sealants end-markets,
Transaction Expected to Close in First Quarter 2021
Under terms of the agreement, Huntsman will pay $250 million, subject to customary closing adjustments, in an all-cash transaction funded from available liquidity. Gabriel had 2019 revenues of approximately $106 million with three manufacturing facilities located in Ashtabula, Ohio, Harrison City, Pennsylvania and Rock Hill, South Carolina.
Based on calendar year 2019, the purchase price represents an adjusted EBITDA multiple of approximately 11 times, or approximately 8 times pro forma for synergies. The transaction is expected to close in the first quarter of 2021 after regulatory approvals.
Acquisition to Broaden Huntsman’s Specialty Portfolio
Commenting on the acquisition, Scott Wright, president of Huntsman's advanced materials division, said: "
The acquisition of Gabriel Performance Products broadens the offering in our specialty portfolio and is complementary to our recent acquisition of CVC Thermoset Specialties. 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 the acquisition Huntsman concludes a series of strategic initiatives in Advanced Materials division started in 2019 before the COVID-19 pandemic. The initial intent was to complete the acquisitions of Gabriel and CVC simultaneously, together with the divestiture of India DIY business earlier this year.
Despite the challenges created by COVID, Huntsman has already closed on two of the transactions and intend to close on the acquisition of Gabriel within the first quarter of 2021. Huntsman has significantly strengthened the Advanced Material's portfolio and broadened the offerings to the market.
Source: Huntsman