Huntsman decides to retain Textile Effects
Huntsman Corporation announced on January 17, 2017, that it has decided to retain the Textile Effects business and exclude it from its planned Pigments and Additives spin-off. Strong pricing recovery for titanium dioxide and the identification of business improvement opportunities representing more than USD 75 million in annual EBITDA are expected to significantly enhance the financial strength of Venator’s business. The USD 75 million in business improvements are incremental to current earnings and are expected to be completed by the end of 2018.
Huntsman also announced that the name of its planned spin-off will be Venator Materials Corporation. Venator is the Latin word for hunter and is intended, in part, to acknowledge the Huntsman legacy. Venator shares are expected to trade on the New York Stock Exchange under the ticker VNTR after the distribution to Huntsman’s shareholders, which remains targeted for the second quarter of 2017.
Peter R. Huntsman, Huntsman Corporation President and CEO, commented: “We are making significant progress toward the spin-off and are pleased with the Pigments and Additives business recovery. We expect Venator will be a premier pigments company unencumbered by excessive debt or other unrelated liabilities. Improved titanium dioxide pricing combined with the identification of business improvement opportunities that are incremental to current earnings are expected to more than offset the free cash flow that Venator would have received from the Textile Effects business.
“In addition to the progress we are making on the spin of our Pigments and Additives business, we continue to improve our free cash flow generation and grow our downstream differentiated businesses. During 2016, we also repaid approximately USD 550 million of debt and significantly strengthened our balance sheet.”
Venator Materials Corporation’s Registration Statement on Form 10 is available on Venator’s website at www.venatorcorp.com and the SEC’s website at www.sec.gov. The completion of the spin-off is subject to the satisfaction or waiver of a number of conditions, including the Registration Statement on Form 10 for Venator Materials Corporation’s common stock being declared effective by the SEC and certain other conditions described in the information statement included in the Form 10.