Ink World Staff12.10.20
Huntsman Corporation reached an agreement to acquire Gabriel Performance Products, a North American specialty chemical manufacturer of specialty additives and epoxy curing agents for the coatings, adhesives, sealants and composite end-markets, from funds owned by Audax Private Equity.
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, OH, Harrison City, PA and Rock Hill, SC. 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.
"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," said Scott Wright, president of Huntsman's Advanced Materials division. "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."
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, OH, Harrison City, PA and Rock Hill, SC. 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.
"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," said Scott Wright, president of Huntsman's Advanced Materials division. "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."
