Huntsman to Acquire Gabriel Performance Products
Huntsman has agreed to buy Gabriel Performance Products, a North American 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 the terms of the agreement, Huntsman will pay $250 million in cash. The deal is expected to close in the first quarter of 2021, subject to regulatory approvals.
Gabriel, which has been under Audax ownership since 2014, posted revenues of approximately $106 million in 2019. It has three manufacturing facilities in Ashtabula, Ohio; Harrison City, Pennsylvania; and Rock Hill, South Carolina.
“The acquisition of Gabriel Performance Products broadens the offering in our specialty portfolio and is complementary to our recent acquisition of CVC Thermoset Specialties,” 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. The acquisition will further enhance our competitiveness and our world class formulations business by improving our ability to create differentiation in our customers' applications."
Huntsman completed its acquisition of North American specialty chemicals company CVC Thermoset Specialties in May.
Both acquisitions are part of a suite of initiatives for the Advanced Materials division that started in 2019, and also included the sale of Huntsman’s India DIY business last month to Pidilite Industries for about $257 million. Another $28 million could be received under an earnout within 18 months if the business achieves sales revenue in line with 2019.
Author: Elaine Burridge, Freelance Journalist
