Huntsman Corporation
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Huntsman Corporation is an American multinational manufacturer and marketer of chemical products for consumers and industrial customers. Huntsman manufactures assorted
polyurethanes Polyurethane (; often abbreviated PUR and PU) is a class of polymers composed of organic chemistry, organic units joined by carbamate (urethane) links. In contrast to other common polymers such as polyethylene and polystyrene, polyurethane term ...
, performance products, and adhesives for customers like
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, GE, Chevron,
Procter & Gamble The Procter & Gamble Company (P&G) is an American multinational consumer goods corporation headquartered in Cincinnati, Ohio. It was founded in 1837 by William Procter and James Gamble. It specializes in a wide range of personal health/con ...
,
Unilever Unilever PLC () is a British multinational consumer packaged goods company headquartered in London, England. It was founded on 2 September 1929 following the merger of Dutch margarine producer Margarine Unie with British soap maker Lever B ...
and Walkaroo. With global headquarters in The Woodlands, Texas, it operates more than 60 manufacturing, R&D and operations facilities in over 25 countries and employ approximately 7,000 associates across three business divisions. Huntsman Corporation had 2023 revenues of approximately $6 billion.


History

The Huntsman Corporation was initially founded as the Huntsman Container Corporation in 1970 by Alonzo Blaine Huntsman Jr. and his younger brother Jon Huntsman, Sr. It went public as the Huntsman Corporation on the New York Stock Exchange in February 2005. Huntsman has grown through a series of acquisitions (with some divestitures) and today is a manufacturer and marketer of differentiated and specialty chemical products. In April 1994, Huntsman acquired the Texaco Chemical company for $1.1 billion. Texaco Inc. agreed to sell its last remaining petrochemicals plant to Huntsman in 1999 for about $600 million. The Huntsman Corporation became the then third-largest petrochemical business in the United States when in 1999, it acquired
Imperial Chemical Industries Imperial Chemical Industries (ICI) was a British Chemical industry, chemical company. It was, for much of its history, the largest manufacturer in Britain. Its headquarters were at Millbank in London. ICI was listed on the London Stock Exchange ...
' polyurethanes, titanium dioxide, aromatics and petrochemical global businesses for $2.8 billion. Huntsman also acquired the Performance Additives and Titanium Dioxide (TiO2) businesses of Rockwood Holdings, Inc. on October 1, 2014, to become the largest color and white pigments company in the world. Huntsman paid approximately $1 billion in cash and assumed certain unfunded European pension liabilities.


Huntsman Building Solutions Created

Huntsman named its spray polyurethane foam (SPF) business as Huntsman Building Solutions (HBS) in May, 2020. The SPF business was formed when Huntsman acquired leading North American SPF company Icynene-Lapolla in February 2020 and combined it with Demilec, which Huntsman acquired in 2018. Huntsman is now the fifth largest insulation manufacturer in the world.


Proposed merger with Clariant

In May 2017, Huntsman and Clariant announced that they would merge, as equals, forming a global leader in specialty chemicals with the deal valued at $20 billion. Clariant shareholders would own 52% of the new entity, with Huntsman shareholders owning the remaining 48% of shares. The merger agreement was terminated on October 27, 2017.


IPO of Venator

Huntsman Corporation spun-off its Pigments and Additives division as Venator Materials in an initial public offering on August 8, 2017. Venator became the owner of Huntsman's Titanium Dioxide and Performance Additives businesses, which offers products comprising a broad range of pigments and additives that add performance and color to many everyday items. On May 14, 2023, Venator filed for
Chapter 11 bankruptcy Chapter 11 of the United States Bankruptcy Code ( Title 11 of the United States Code) permits reorganization under the bankruptcy laws of the United States. Such reorganization, known as Chapter 11 bankruptcy, is available to every business, w ...
.


Terminated takeover and Apollo suit

In June 2007, it was announced that Huntsman had agreed to be acquired by Access Industries, owned by the billionaire Len Blavatnik, for $5.88 billion in cash. Huntsman shareholders would receive $25.25 a share from Access Industries' chemical unit, Basell Holdings, based in Hoofddorp, Netherlands. Access would assume $3.7bn of Huntsman debt. However, on July 12, 2007, the agreement was terminated as Huntsman agreed to be bought by
Apollo Global Management Apollo Global Management, Inc. is an American asset management firm that primarily invests in alternative assets. , the company had $548 billion of assets under management, including $392 billion invested in credit, including mezzanine capita ...
for $6.51bn. Huntsman filed a suit in Texas against Apollo and two partners, co-founders Leon Black and Josh Harris, after the group backed out of the deal to purchase the company in June 2008. The suit alleged fraud against Apollo Management as Huntsman believed that the group never intended to allow its Hexion Specialty Chemicals unit to buy Huntsman Corp. for $6.5 billion. Huntsman also claimed Apollo put forth a higher bid to prevent the Basell AF buyout as it would have threatened Hexion's market share. Hexion stated Huntsman's declining financial position as the reason the deal was terminated. Upon termination of the Hexion merger agreement, the Huntsman stock value dropped by almost 50%. In December 2008, Apollo and Hexion agreed to pay Huntsman $1.1 billion in return for Huntsman dropping all charges against them. This includes $500 million in cash, a $250 million investment in Huntsman, and an additional $425 million in cash, repayable by separate suits against Credit Suisse.


Starboard stake

Activist hedge fund
Starboard Port and starboard are Glossary of nautical terms (M-Z), nautical terms for watercraft and spacecraft, referring respectively to the left and right sides of the vessel, when aboard and facing the Bow (watercraft), bow (front). Vessels with bil ...
disclosed a stake in the company in 2021. The hedge fund owned more than 8% of Huntsman, roughly $500 million worth. Starboard did not succeed in gaining seats on the company's board, one of its goals, and decided to completely exit their position within Huntsman.


Business segments

Advanced Materials supplies synthetic and formulated polymer systems. Huntsman’s epoxy, acrylic and polyurethane-based polymer products are used to replace traditional materials in aircraft, automobiles and electrical power transmission. Epoxy-based adhesives are also sold in the B2C segment primarily in India, Brazil & some parts of Europe under the brand name Araldite. The roots date back to 1758, when J.R. Geigy Ltd., the oldest chemicals company in
Basel Basel ( ; ), also known as Basle ( ), ; ; ; . is a city in northwestern Switzerland on the river Rhine (at the transition from the High Rhine, High to the Upper Rhine). Basel is Switzerland's List of cities in Switzerland, third-most-populo ...
,
Switzerland Switzerland, officially the Swiss Confederation, is a landlocked country located in west-central Europe. It is bordered by Italy to the south, France to the west, Germany to the north, and Austria and Liechtenstein to the east. Switzerland ...
, began trading in chemicals and dyes. Huntsman acquired the Advanced Materials business from Vantico back in 2003. Polyurethanes supplies MDI-based polyurethane precursors and systems used in an extensive range of applications and market sectors. Performance Products supplies amines, carbonates, surfactants, and maleic anhydride. End uses include agrochemicals; oil, gas, and alternative energy; home detergents and personal care products; adhesives and coatings; mining; and curing agents for polyurethane and epoxy.


Controversy

During the
2022 Russian invasion of Ukraine On 24 February 2022, , starting the largest and deadliest war in Europe since World War II, in a major escalation of the Russo-Ukrainian War, conflict between the two countries which began in 2014. The fighting has caused hundreds of thou ...
, Huntsman Corporation refused to withdraw from the Russian market. Research from
Yale University Yale University is a Private university, private Ivy League research university in New Haven, Connecticut, United States. Founded in 1701, Yale is the List of Colonial Colleges, third-oldest institution of higher education in the United Stat ...
updated on April 28, 2022 identifying how companies were reacting to Russia's invasion, identified Huntsman in their worst category of "Digging In", or refusing to withdraw or limit activities in Russia. Peter Huntsman of Huntsman Corporation responded to the Yale list by condemning the Russian invasion of Ukraine. Peter Huntsman further noted the company was in full compliance with all American and EU laws; asserted none of their products had military applications; stated hundreds of Russian and Ukrainian workers depended on the company to support their families; and he also objected to the implication Yale University has the right to dictate foreign policy for American companies.Roger McDonough (May 11, 2022
After Yale ‘F’ grade, Huntsman CEO defends company’s decision to remain in Russia
KPCW.org, accessed 14 May 2023


References

{{Authority control Chemical companies of the United States Companies listed on the New York Stock Exchange Chemical companies established in 1970 Manufacturing companies based in Texas Companies based in The Woodlands, Texas 1970 establishments in Utah 2005 initial public offerings