August 2, 2007
Koch Subsidiary Buys Polymer Plants: Flint Hills Resources Will Also Acquire Huntsman Corp.’ S Base Chemical Business Later This Year.
By Phyllis Jacobs Griekspoor, The Wichita Eagle, Kan.
Aug. 2--Flint Hills Resources, in its largest acquisition to date, has closed on the purchase of Huntsman Corp.' s U.S. polymers business.
Texas-based Huntsman received about $350 million in cash at the closing of the deal, which includes manufacturing plants in Odessa and Longview, Texas; Peru, Ill.; and Marysville, Mich. The deal included a promise to buy the remaining Huntsman base chemicals business when its Port Arthur, Texas, plant reopens later this year.
Flint Hills Resources is a wholly owned subsidiary of Wichita-based Koch Industries. The Huntsman acquisition will bring about 50 new employees to Flint Hills' Wichita headquarters.
"We are delighted to have closed on the sale of our U.S. polymers business and look forward to completing this strategic divestiture by closing on the sale of our U.S. base chemicals business later this year," Peter Huntsman, president and chief executive of Huntsman Corp., said in a statement.
Huntsman is a global manufacturer and marketer of chemicals. Its operating companies manufacture products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
Huntsman has about 14,000 employees in 24 countries and had 2006 revenue from all operations of more than $13 billion.
Flint Hills Resources is a leading producer of fuels, base oils for lubricants and other petrochemical products.
It became a wholly owned subsidiary of Koch Industries in 2002 and owns refineries in Alaska, Minnesota and Texas; a chemical intermediates plant near Joliet, Ill.; pipelines; and an interest in Excel Paralubes in Westlake, La.
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