The business is headquartered in Ankleshwar, India, and produces amines and surfactants for use in personal care, detergents and automobile applications.
Texas-headquartered Huntsman said the acquisition will help it meet rapid growth in demand for amines in the region and will help the company serve its Indian customers.
“A stronger manufacturing presence in India will enable us to better support our customers and their growth specifically within the Indian economy,” said president of performance products division Daniele Ferrari.
While subject to certain terms and conditions, the company expects the acquisition to occur in the first half of 2011 and be accretive almost immediately. Financial details have not been disclosed.
In taking on the business, Huntsman expects its sales in India to reach approximately $260m which is about 3 per cent of its total revenues. The Laffans chemicals business is estimated to have annual sales of about $45m.
According to Ferrari, the acquisition is expected to both complement the existing technology and product offering, as well as introduce new potential for product development.
Expansion in Russia
The company has announced a number of expansions in recent months, the most recent of which concerns its polyetheramine facility in Singapore, which it is expanding to meet market demand.
Last year, Huntsman signed an agreement with Zavod Sintanolov to produce surfactants for the Russian personal care market.
The agreement involves the two companies sharing ‘know-how, expertise and resources’ and forms part of Huntsman’s focus on increasing the supply network within the EMEA region.
For Zavod Sintanolov, the deal is a chance to tap into a number of synergies with its new business partner, and benefit from Huntsman’s expertise in the area of surfactants.