Specialty chemical manufacturers Huntsman (NYSE: HUN) and Clariant (SIX: CLN) have agreed to merge, creating a combined company with an enterprise value of some $20 billion. Current Clariant investors will own about 52% of the business, to be named HuntsmanClariant, while Huntsman shareholders will own the remainder. HuntsmanClariant will be listed in Switzerland and the US, forming an industry giant with sales of more than $13.2 billion and adjusted EBITDA of $2.3 billion.
The deal is the latest data point in a spate of consolidation among industry heavyweights from the agricultural and chemical sectors. In fact, M&A of all sorts is growing more frequent in the industry: the number of completed chemicals deals by American, Canadian and European investors has risen three straight quarters, per the PitchBook Platform, as you can see here:
In total, corporate acquirers from those geographies have completed 119 transactions in the chemicals and gases sector since the start of 2016. The majority, about 52%, have been in the industrial chemicals vertical, while nearly 32% have been related to specialty chemicals.