Swiss dyes and specialty chemicals company Archroma, part of US investment firm SK Capital Partners, announced on Tuesday that it has entered into a definitive agreement to acquire dyes, chemicals and digital inks supplier Textile Effects from Huntsman Corporation.
The merged company aims to be a leader in sustainability, innovation and performance in the textile industry, offering fashion brands and suppliers of automotive, technical textiles and home textiles the best value for money while preserving natural resources and the planet, Archroma said in a statement Message.
Both Archroma and Textile Effects are founding members of Sustainable Chemistry for the Textile Industry (SCTI), a coalition of leading chemical companies dedicated to empowering the textile and leather industries to apply sustainable, state-of-the-art chemical solutions that empower workers in factories, protecting local communities, consumers and the environment.
“I am very excited about the merger of Huntsman Textile Effects and Archroma. We have finally fulfilled our dream of bringing together the technologies, products and skills of the old pioneers in the textile industry, namely Ciba, Sandoz, Hoechst and BASF, into a modern and coherent company focused on creating innovative and sustainable systems and solutions for to deliver the evolving needs of today’s textile industry,” commented Barry Siadat, co-founder of SK Capital Partners and Chairman of Archroma, in the release.
“The merger of Archroma and Textile Effects is a game changer that brings together two very complementary organizations with a strong culture of innovation and a shared commitment to advancing the textile industry. We are excited about what we can achieve together. At a time when we are seeing robust growth trends in sustainability, the combination will position us well to accelerate growth and create significant value for our customers, employees and stakeholders,” said Rohit Aggarwal, President of Huntsman Textile Effects.
Textile Effects has offices in more than 90 countries and seven main manufacturing facilities in six countries – China, Germany, India, Indonesia, Mexico and Thailand.
Closing of the transaction is subject to customary conditions and approvals and is expected to occur in the first half of 2023.