Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, March 27, 2020

Article Excerpt

HUNTSMAN CORP., $14.24, symbol HUN on New York, is a leading producer of specialty chemicals for makers of adhesives, textiles, construction materials, paints, detergents and automotive products. On March 16, Huntsman announced that it had acquired CVC Thermoset Specialties for $300 million in cash. CVC is a North American specialty chemical manufacturer that serves the industrial composites, adhesives and coating markets. With manufacturing plants in Ohio and New Jersey, CVC has annual revenues of $115 million. In the quarter ended December 31, 2019, Huntsman’s revenue fell 9.0%, to $1.66 billion from $1.82 billion a year earlier. Revenues were lower due to softer sales at all four of its operating segments. Excluding one-time items, the company earned $65 million, or $0.29 a share, down 27.8% from $90.0 million, or $0.38. The CVC acquisition should be a good fit for Huntsman’s Advanced Materials unit. CVC’s products, combined with Huntsman’s epoxy-based materials, should provide even tougher and stronger materials to sell to customers. This includes making highly…

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