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Texas Petrochemicals Closes Acquisition of Huntsman Corporation's U.S. Butadiene Business
HOUSTON (Tuesday, June 27, 2006) — TPC Group, Inc. (the Company) (OTC:TXPI.PK) today announced that it has closed its acquisition of Huntsman Corporation’s U.S. butadiene and related MTBE operations, which includes a manufacturing facility located in Port Neches, Texas for approximately $192 million, subject to customary post closing working capital adjustment. An additional payment of $70 million will be made upon the satisfaction of certain milestones related to the restart and related resumption of crude C4 supply from Huntsman's olefins unit located in Port Arthur, Texas.
The Port Neches manufacturing facility has a capacity of approximately 900 million pounds of butadiene per year. The addition of these assets creates a business with more than $1.7 billion in revenues on a pro forma basis based on calendar year 2005 results.
"This acquisition is a landmark transaction for the Company and a milestone for our growth initiatives. The addition of the Huntsman operations propels us into leading the market in C4 processing and further strengthens our position as a global leader in the chemical industry," said Charlie Shaver, president and CEO of TPC Group, Inc. "By staying focused on our core business this allows us to develop stronger partnerships with our key suppliers and customers. The leverage created by the operational and financial strength of this transaction will allow us to create long-term shareholder value."
The Port Neches manufacturing facility has a capacity of approximately 900 million pounds of butadiene per year. The addition of these assets creates a business with more than $1.7 billion in revenues on a pro forma basis based on calendar year 2005 results.
"This acquisition is a landmark transaction for the Company and a milestone for our growth initiatives. The addition of the Huntsman operations propels us into leading the market in C4 processing and further strengthens our position as a global leader in the chemical industry," said Charlie Shaver, president and CEO of TPC Group, Inc. "By staying focused on our core business this allows us to develop stronger partnerships with our key suppliers and customers. The leverage created by the operational and financial strength of this transaction will allow us to create long-term shareholder value."
