Switzerland-based Archroma, a global leader in sustainable specialty chemicals and solutions for industries such as textiles, packaging and paper, and paints and coatings, has closed the acquisition of the Textile Effects business from Huntsman Corporation (Huntsman Textile Effects).

When the Huntsman Textile Effects acquisition was first announced in August 2022, Archroma Group chief executive officer (CEO) Heike van de Kerkhof called the transaction a “merger of equals”.

Archroma, a global leader in sustainable specialty chemicals and solutions, has closed the acquisition of the Textile Effects business from Huntsman Corporation (Huntsman Textile Effects). In addition to the closing of the Textile Effects acquisition, Archroma announced that it has updated its overall business into two operating divisions for growth.

The global business of Huntsman Textile Effects comprises approximately 2,300 employees in 33 countries and 10 production sites globally which, when combined with Archroma, means the company will have more than 5,000 employees in total, in 42 countries and 35 production sites. The companies’ combined product portfolios will be complementary, offering fashion brands and the global textile industry high performance and innovation, whilst respecting natural resources and the planet, according to a joint press release by both companies.

Archroma is a portfolio company of US-based private investment firm SK Capital Partners. Since its formation in 2013, the company has been building a comprehensive portfolio of solutions to serve the apparel, textiles, packaging, paper, coatings, adhesives, and sealants markets. The acquisition of Huntsman Textile Effects adds to the rich heritages of Archroma, with Archroma having previously acquired the global textile chemicals business of BASF, M Dohmen, and the stilbene-based paper optical brightener business of BASF.

In addition to the closing of the Textile Effects acquisition, Archroma announced that it has updated its overall business into two operating divisions for growth, each focused on a separate end market.

The Textile Effects business acquired from Huntsman will be integrated with the Brand and Performance Textile Specialties business of Archroma into one new division named Archroma Textile Effects. The new division will be led by Rohit Aggarwal, former president of Huntsman Textile Effects, who is appointed as divisional president and CEO of the Archroma Textile Effects division, as well as president Asia.

The packaging and paper specialties and coatings, adhesives, and sealants businesses of Archroma have been recently combined into one new division named Archroma Paper, Packaging, and Coatings, under the leadership of Sameer Singla, divisional president and CEO of the Archroma Paper, Packaging, and Coatings division, as well as president Americas and Europe, Middle East, and Africa.

The new structure will ensure that both divisions obtain the resources and focus needed to continue providing Archroma’s customers and business partners with superior experience and solutions. In particular, Archroma is committed to supporting global megatrends and societal shifts such as circular fashion, plastic-to-paper replacement, and water-based paints and coatings, with the innovations and solutions needed to do so, added the release.

“We are very proud of Archroma’s achievements in recent years which have been driven by innovation and organic initiatives, as well as the integration of strategic acquisitions. We have made substantial investments in development and production of high performance and earth-friendlier dyes, as well as a host of systems and solutions that reduce the environmental and energy footprints of the mills, leading the industry’s efforts to offer more sustainable products to the consumers. The acquisition of Huntsman Textile Effects enhances Archroma’s position as a leader in innovation, service, and sustainability and creates a powerhouse with superior capabilities to serve our customers and markets,” commented Heike van de Kerkhof.

“With this acquisition, Archroma is now in a position to leverage the complementarities and synergies of not just one but two leaders in textile chemicals and dyes. The integration will allow us to offer the cost-effective innovation, quality, reliability, expertise, and market coverage that our partners need to win in the current market conditions,” said Thomas Bucher, group chief finance officer.

“I am very excited to see our two leading teams unite. We share the same passion for innovation and the same vision for a more efficient and sustainable textile and apparel sector. At this critical time for our industry, we have a unique opportunity to step up as champions of transformation that help textile manufacturers and brands around the globe find new avenues for growth and new ways to delight and inspire consumers,” said Rohit Aggarwal.

“Archroma has a long history of providing our dyes, specialty chemicals, and water-based emulsions to paper, packaging, paints, coatings, and many other applications. With our new Paper, Packaging, and Coatings division, we will be able to partner with our global customer base to drive innovation in our market, providing the increasingly sustainable solutions that consumers demand and deserve,” said Sameer Singla.

Fibre2Fashion News Desk (NB)