Ciba Specialty Chemicals has entered into a definitive agreement to sell its Textile Effects business to Huntsman Corporation for a consideration of CHF 332 million ($253 million), in cash and assumed debt. The divestment is expected to be concluded in the third quarter of 2006 after a comprehensive separation process and the necessary regulatory approvals. All approximately 3,300 employees of Textile Effects, along with 900 Group supporting staff will transfer to Huntsman.
The Textile Effects Segment had sales of CHF 1.3 billion ($990 million) in 2005. It has more than 10,000 customers globally. The divestment supports the strategic intention of the Board of Directors to focus on the core businesses Plastic Additives, Coating Effects and Water & Paper Treatment, strengthening and expanding the company’s overall position.