The parent group of Archroma Pakistan Limited, Archroma, has entered into a definitive agreement to acquire the textile effects business of Huntsman Corporation. The estimated value of the acquisition is $718 million.
Archroma has agreed to acquire the Textile Effects Business of Huntsman Corporation globally, according to the stock filing.
Both Archroma and Textile Effects are founding members of Sustainable Chemistry for the Textile Industry (SCTI), an alliance of leading chemical companies that strives to empower the textile and leather industries to apply sustainable, state-of-the-art chemistry solutions that protect factory workers, local communities, consumers and the environment.
Both companies have been recognised by the industry and are each recipient of multiple awards for supplying sustainable systems and solutions in dyes and chemicals that enable fashion brands, retailers and textile manufacturers to create articles that are better for consumers and the planet.
“The combination of Archroma and Textile Effects is transformational, bringing together two highly complementary organisations with strong cultures of innovation and a shared commitment to inspire advancements in the textile industry,” said Rohit Aggarwal, President of Huntsman Textile Effects.
“We are excited by what we will be able to achieve together. At a time when we are seeing robust growth trends in sustainability, the merger will position us firmly to accelerate growth and drive significant value for our customers, employees, and stakeholders,” he added
Archroma is a global, diversified provider of speciality chemicals serving branded and performance textiles, packaging, and paper. The transaction is subject to the review and approval of the concerned regulatory authorities, it’s expected to take place in the first half of 2023, the filing added.