On December 8, Huntsman Group announced that it has reached an agreement to acquire Gabriel Functional Products Company (hereinafter referred to as Gabriel), a subsidiary of Audax Private Equity.
Gabriel is a specialty chemicals manufacturer in North America, producing specialty additives and epoxy curing agents for the end markets of coatings, adhesives, sealants and composites. Gabriel has three factories located in Ashtabula, Ohio, Harrison, Pennsylvania, and Rock Hill, South Carolina. In 2019, Gabriel's revenue was approximately US$106 million.
According to the terms of the agreement, Huntsman will pay 250 million U.S. dollars for the purchase, but the purchase price can be finalized according to changes in working capital and other factors. This transaction is an all-cash transaction, funded by the company's available liquid assets. The purchase price is approximately 11 times the adjusted EBITDA* in 2019, or approximately 8 times the estimated adjusted EBITDA after considering the synergies. The transaction is expected to be completed in the first quarter of 2021.