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Ciba's Textile Effects get different operational structure

21 Feb '06

3 min read

Ciba Specialty Chemicals has announced that it has entered into a definitive agreement to sell its Textile Effects business to Huntsman Corporation for a consideration of CHF 332 million, in cash and assumed debt.

The divestment is expected to be concluded in the third quarter of 2006 after a comprehensive separation process and the necessary regulatory approvals.

The sale comprises the Textile Effects business, including its assets and liabilities. All approximately 3,300 employees of Textile Effects, along with 900 Group supporting staff will transfer to Huntsman.

The Board of Directors took the decision to divest the business after several months of intense evaluation. During this process, the Company was advised by an investment bank and considered several bids as part of an auction.

Armin Meyer, Chairman of the Board and CEO of Ciba Specialty Chemicals says that in August 2005, based on the development of the textile business, the Board of Directors decided to evaluate strategic options for Textile Effects, including a divestment.

The aim was to find a solution which secures a sustainable future for the Textile Effects business, strengthens the Company's overall position and takes into account the interests of employees. They concluded that a divestment would be the best option. The textile business needs a different operational structure from that of our other three segments, as it has a broader, more regional customerbase.

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