Innospec to buy Huntsman’s European personal care business for $225m

US-based speciality chemicals manufacturer Innospec has committed to buy Huntsman's European personal care and home care business for $225m.

Under the deal, Innospec will purchase Huntsman's manufacturing facilities located in Saint-Mihiel, France; Castiglione delle Stiviere, Italy; and Barcelona, Spain.

Huntsman president and CEO Peter Huntsman said: “This proposed transaction is consistent with our strategic financial objectives of increasing our cash flow generation, growing our downstream differentiated businesses and separating our titanium dioxide business."

Subject to customary conditions, the deal is expected to close by the end of the fourth quarter of this year.

Huntsman will use the net proceeds of the sale to repay debt.

This debt repayment would be in addition to Huntsman’s recent $100m debt reduction in July and the proceeds will also contribute to Huntsman’s objective of generating more than $350m of free cash flow this year.

The acquisition deal will be put before employee representative bodies during the consultation period.