- Archroma, a global leader in sustainable specialty chemicals and solutions for industries such as textiles, packaging & paper, paints and coatings, announced the closing of the acquisition of the Textile Effects business from Huntsman Corporation (“Huntsman Textile Effects”).
According to the company’s website press release on February 28, 2023, 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”. Indeed, 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 highly complementary, offering fashion brands and the global textile industry the high performance and innovation they expect, whilst respecting natural resources and the planet.
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 & 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 & CEO of the Archroma Textile Effects division, as well as President Asia.
The Packaging & Paper Specialties and Coatings, Adhesives & Sealants businesses of Archroma have been recently combined into one new division named Archroma Paper, Packaging & Coatings, under the leadership of Sameer Singla, Divisional President & CEO of the Archroma Paper, Packaging & Coatings division, as well as President Americas and Europe, Middle East & Africa.
This new structure will ensure that both divisions obtain the resources and focus needed to continue providing Archroma’s customers and business partners with the superior experience and solutions they have come to expect.
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.
Heike van de Kerkhof comments: “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.”
Thomas Bucher, Group Chief Finance Officer, adds: “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.”
Rohit Aggarwal further adds: “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.”
Sameer Singla concludes: “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 & 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.”
