Report: Bain Capital Considering Takeover of Huntsman Corp.
- Posted on June 15, 2012 at 12:35pm by
Becket Adams
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Bank of America Merrill Lynch is looking for private equity firms interested in buying Huntsman Corp., the chemical company founded by failed Republican presidential candidate Jon Huntsman’s father, according to Reuters.
Do you know who is rumored to be extremely interested in the Huntsman buyout? Bain Capital (yes, that Bain Capital).
“Bank of America Merrill Lynch has pitched the company, which has a market value of about $2.8 billion and has nearly $4 billion in debt, to several private equity firms across the country, including Bain, KKR & Co, Advent International and Warburg Pincus,” National Journal reports.
We have Huntsman Corp. to thank for these. Well, women do at least.
“The decision as to which firm the company goes to is in part up to the elder Huntsman, who fueled his son’s presidential ambitions through several large donations,” the report adds.
Huntsman Corp., which was founded in 1970 by Jon Huntsman Sr., is currently run by Peter Huntsman. The the largest shareholders of the company, with nearly 20 percent of its shares, is still the elder Huntsman and his family.
The takeover of Huntsman Corp. has been something of an on-again-off-again project dating back to 2007 when Apollo Global Management LLC’s Hexion Specialty Chemicals unit was supposed to buy the company for $6.5 billion.
That was in 2007. What else happened in 2007? Oh, that’s right: An economic crash. Apollo ended up bailing on the deal — but not before paying out $750 million to Huntsman Corp. for walking away from their agreement.
But despite interest from famed private equity firms like Bain, Huntsman Corp. may find itself in another Apollo situation.
“Huntsman may prove to be too big for a private equity firm to swallow whole on its own,” according to Reuters.
“Bankers who have looked at the company suggest it would take an equity check of up to $2 billion and would require a consortium of as many as three private equity firms, which would complicate any deal,” the report adds.
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KURT1010
Posted on June 16, 2012 at 8:17amWho Cares ? He hasnt been with the company for some time……
Report Post »Chuck Stein
Posted on June 15, 2012 at 2:42pm“Apollo ended up bailing on the deal — but not before paying out $750 million to Huntsman Corp. for walking away from their agreement.”
Report Post »No mention of the lawsuit that Huntsman had to win in order to get that $750 million payment? The way it’s written makes Apollo look generous.
mcsledge
Posted on June 15, 2012 at 2:33pmJon Huntsman Sr. has more character than all of Washington combined. You may never meet a better man in this lifetime.
Report Post »Mutiny
Posted on June 15, 2012 at 3:02pmLooks like he runs his company in a very similar way to Washington.
Report Post »OhioRifleman
Posted on June 15, 2012 at 3:36pm@ Mutiny
That is not uncommon in businesses. More than a few companies of all sizes run debts higher than their net worth and get along with it just fine. In some industries, the necessary equipment is eight digits per piece before modifications (Here’s looking at you, cargo airliners). Not all businesses with a solvent business model can shell out that kind of green without a booster.
Report Post »Mutiny
Posted on June 15, 2012 at 5:35pm@ohio
I agree its not all that uncommon. It just goes to show why we have the debt problems we have in this country. Its in our personal lives, businesses, and in our government. Debt is enslavement.
Report Post »cykonas
Posted on June 15, 2012 at 8:55pm@Mutiny
Your is a misrepresentation due to one very, very important difference. Huntsman is playing with their own money and/or money that was voluntarily invested in their company. They didn’t steal it from the paychecks of working folks whether they wanted in or not.
Report Post »dwalk
Posted on June 15, 2012 at 9:57pmLooks like he should have been paying attention to the Company, rather than his failed attempt at achieving the Presidency.
Report Post »Mutiny
Posted on June 15, 2012 at 11:23pm@cy
Technically Huntsman corp is a publicly traded company so really he was playing around with others money.
I wasnt bringing who’s money it belong to, I was pointing out the similarity of his corporations spending to Washington’s.
Report Post »fastgen1
Posted on June 15, 2012 at 1:23pmI am a transplant to Utah, and I am a “jack Mormon”, but I would consider John Huntsman one of the finest men in this country, or any other…
Report Post »Gonzo
Posted on June 15, 2012 at 1:18pmAccording to the Democrats, Bain would take over Huntsman and shut them down. That’s how they got so rich. Make any sense to you?
Report Post »HorseCrazy
Posted on June 15, 2012 at 1:49pmgot to love liberal logic
Report Post »lukerw
Posted on June 15, 2012 at 1:13pmHuntsman are trained to be Gentlemen: DO IT!
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