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Ciba's Textile Effects get different operational structure

21 Feb '06

3 min read

The Company will incur an after tax write-down charge of approximately CHF 250 million, which will be booked at the closing of the transaction in 2006, relating to the difference between the book value and sales price of Textile Effects.

Part of the overall consideration will be paid in cash and CHF 75 million will be assumed debt, including unfunded pension cost relating to the business. After all expected costs, net debt, including unfunded pension costs, is expected to reduce by CHF 200 million in 2006 and by another CHF 80–100 million thereafter as a result of this transaction.

Following the divestment, Ciba Specialty Chemicals will use the opportunity to streamline the organizational and geographical structure to meet the needs of the remaining core global businesses. In addition, the Company is well advanced with harmonizing business processes and implementing a company-wide system structure with new software. The first local roll-outs will begin in the autumn of 2006.

The Textile Effects Segment had sales of CHF 1.3 billion in 2005. It has more than 10,000 customers globally, with a strong network of manufacturing facilities across Europe, Asia and the Americas.

Ciba Specialty Chemicals create effects that improve the quality of life – adding performance, protection, color and strength to textiles, plastics, paper, automobiles, buildings, home and personal care products and much more.

Commodity chemicals maker Huntsman Corporation is operating companies manufacture basic products for a variety of global industries including chemicals, plastics, automotive, aviation, footwear, paints and coatings, construction, technology, agriculture, health care, textiles, detergent, personal care, furniture, appliances and packaging.

Ciba Specialty Chemicals

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