Huntsman and Flint Hills Resources, LP, an independent, wholly owned subsidiary of Koch Industries, Inc., have closed on the sale of Huntsman's U.S. Polymers business for approximately US$350 mln. The US$350 million at the closing, includes the estimated value of associated inventory for its U.S. Polymers business, which remains subject to a post-closing adjustment. Huntsman will retain other elements of working capital, including accounts receivables, accounts payable and certain accrued liabilities, which will be liquidated for cash.
Huntsman's manufacturing assets located at four U.S. sites: Odessa and Longview, Texas; Peru, Illinois; and Marysville, Michigan are included in the closing. Huntsman's amorphous polyalphaolefin (or APAO) products, which Flint Hills will manufacture for Huntsman at the Odessa site under a long-term supply arrangement,
are not included in the sale.
The parties will close on the sale of Huntsman's remaining U.S. Base Chemicals business upon the restart of Huntsman's Port Arthur, Texas, olefins manufacturing facility, commissioning of which is expected to occur later this year.