Archroma to acquire the Textile Effects business of Huntsman Corporation

Archroma, a global leader in sustainable speciality chemicals and solutions, has entered into a definitive agreement to acquire the Textile Effects business from Huntsman Corporation, a global provider of high-quality dyes, chemicals and digital inks to the textile and related industries.

The terms of the deal were not disclosed, but Archroma, a portfolio company of US-based private investment firm SK Capital Partners, said that it expects to close the transaction in the first half of 2023, subject to customary conditions and approvals.

Archroma said that since its formation in 2013, through a series of mergers and acquisitions, as well as internal investments in research and development, manufacturing and service capabilities, the company “has been building a comprehensive portfolio of solutions to serve the emerging needs of the textile industry”.

The combination with Textile Effects “and its rich historical roots of Huntsman and Ciba Specialties will create a technology powerhouse” that will include Archroma’s legacy heritages of Sandoz, Hoechst, Clariant, BASF and Dohmen.

Heike van de Kerkhof, chief executive of Archroma, said in a statement: “We at Archroma are so very excited to announce what we see as a merger of equals. With this agreement, two committed leaders in sustainable and innovative solutions unite to pave the way towards a more sustainable textile industry. We are delighted to welcome a team of highly talented people.

“Innovative and transformative leadership is not built overnight, and we are eager to work together with the people who made that happen at Huntsman Textile Effects.”

Archroma said that both itself 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. As a combined company, they add that they will be able to continue to lead the textile industry in sustainability, innovation, and performance offering fashion brands, automotive, technical and home textiles the “best-in-class cost performance whilst respecting natural resources and the planet”.

Rohit Aggarwal, president of Huntsman Textile Effects, added: “The combination of Archroma and Textile Effects is transformational, bringing together two highly complementary organizations with strong cultures of innovation and a shared commitment to inspire advancements in the textile industry. “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.”