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ICI seals Huntsman deal
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April 15, 1999: 5:49 a.m. ET
U.K. chemical giant sells bulk units for $2.8 billion to Utah-based Huntsman
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LONDON (CNNfn) - U.K. chemical giant ICI confirmed the sale Thursday of its industrial chemicals business to Huntsman in a $2.8 billion deal which makes the Utah-based company the largest private chemicals company in the U.S.
ICI stock surged Wednesday on speculation of a sale which will distance the company from the low-margin bulk chemicals business and allow it to focus on more profitable specialty chemicals.
ICI will receive an initial payment of $2.1 billion for the polyurethane, titanium oxide and some petrochemicals businesses and use the proceeds to pay down group debt.
Huntsman is forming a new vehicle, Huntsman ICI, to manage the acquisitions. ICI will retain a 300 million pound ($480 million) stake in the venture for at least three years.
ICI (ICI) shares slipped back Thursday after its previous gains, shedding 9 pence to reach 626.5 pence.
-- from staff and wire reports
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