Innospec Completes Acquisition of Huntsman’s European Surfactant Business
December 30 2016 - 12:39PM
Innospec Inc. (NASDAQ:IOSP) today announced that it has completed
the acquisition of the European Differentiated Surfactants business
from Huntsman in line with the agreement announced on August 3,
2016.
The business is currently managed from Belgium,
and has manufacturing assets in France, Italy and Spain. With sales
revenues of around $230 million, the business employs approximately
430 people. Innospec will integrate the acquisition into its
Performance Chemicals business.
Patrick S. Williams, President and CEO of
Innospec Inc. said, “We are very pleased that the acquisition has
been completed, and in a relatively short time for such a complex
project. This not only significantly enhances our Personal &
Home Care business, but also adds to our Oilfield Services presence
in Europe. It also provides us with a small presence in new
markets to Innospec including Agriculture, Mining, and
Construction”
Bruce McDonald, President of Performance
Chemicals at Innospec added, “We are delighted to welcome the new
employees to Innospec, and we look forward to working with our
customers and offering a much wider range of products and
technologies.”
Patrick S. Williams concluded, “This delivers on
our commitment to build a larger Performance Chemicals segment and
creates a balanced portfolio of strategic businesses under
Innospec’s ownership. We enter 2017 in good shape to continue to
grow, and deliver value to customers, employees and
shareholders”
Use of Non-GAAP Financial
Measures
The information presented in this press release
includes financial measures that are not calculated or presented in
accordance with Generally Accepted Accounting Principles in the
United States (GAAP). These non-GAAP financial measures
comprise adjusted EBITDA, income before income taxes excluding
special items and net income excluding special items and related
per share amounts. Adjusted EBITDA is net income per our
consolidated financial statements adjusted for the exclusion of
charges for interest expense, net, income taxes, depreciation,
amortization and acquisition fair value adjustments. Income
before income taxes, net income and diluted EPS, excluding special
items, per our consolidated financial statements are adjusted for
the exclusion of foreign currency exchange losses/(gains),
amortization of acquired intangible assets, adjustment to fair
value of contingent consideration, acquisition-related costs,
adjustment of income tax provisions and profit on disposal of
subsidiary. Reconciliations of these non-GAAP financial
measures to their most directly comparable GAAP financial measures
are provided herein and in the schedules below. The Company
believes that such non-GAAP financial measures provide useful
information to investors and may assist them in evaluating the
Company’s underlying performance and identifying operating
trends. In addition, these non-GAAP measures address
questions the Company routinely receives from analysts and
investors and the Company has determined that it is appropriate to
make this data available to all investors. While the Company
believes that such measures are useful in evaluating the Company’s
performance, investors should not consider them to be a substitute
for financial measures prepared in accordance with GAAP. In
addition, these non-GAAP financial measures may differ from
similarly-titled non-GAAP financial measures used by other
companies and do not provide a comparable view of the Company’s
performance relative to other companies in similar
industries. Management uses adjusted EPS (the most directly
comparable GAAP financial measure for which is GAAP EPS) and
adjusted net income and adjusted EBITDA (the most directly
comparable GAAP financial measure for which is GAAP net income) to
allocate resources and evaluate the performance of the Company’s
operations. Management believes the most directly
comparable GAAP financial measure is GAAP net income and has
provided a reconciliation of adjusted EBITDA and net income
excluding special items, and related per share amounts, to GAAP net
income herein and in the schedules below.
About Innospec Inc.
Innospec Inc. is an international specialty
chemicals company with approximately 1300 employees in 20
countries. Innospec manufactures and supplies a wide range of
specialty chemicals to markets in the Americas, Europe, the Middle
East, Africa and Asia-Pacific. The Fuel Specialties business
specializes in manufacturing and supplying fuel additives that
improve fuel efficiency, boost engine performance and reduce
harmful emissions. Oilfield Services provides specialty chemicals
to all elements of the oil & gas exploration and production
industry. The Performance Chemicals business creates
innovative technology-based solutions for our customers in the
Personal Care market, focusing on skincare, haircare and
suncare. Octane Additives produces octane improvers to
enhance gasoline.
Forward-Looking Statements
This press release contains certain
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements
other than statements of historical facts included or incorporated
herein may constitute forward-looking statements. Such
forward-looking statements include statements (covered by words
like “expects,” “estimates,” “anticipates,” “may,” “believes,”
“feels” or similar words or expressions), for example, which relate
to earnings, growth potential, operating performance, events or
developments that we expect or anticipate will or may occur in the
future. Although forward-looking statements are believed by
management to be reasonable when made, they are subject to certain
risks, uncertainties and assumptions, and our actual performance or
results may differ materially from these forward-looking
statements. Additional information regarding risks,
uncertainties and assumptions relating to Innospec and affecting
our business operations and prospects are described in Innospec’s
Annual Report on Form 10-K for the year ended December 31, 2015,
Innospec’s Quarterly Report on Form 10-Q for the quarter ended June
30, 2016 and other reports filed with the U.S. Securities and
Exchange Commission. You are urged to review our discussion
of risks and uncertainties that could cause actual results to
differ from forward-looking statements under the heading "Risk
Factors” in such reports. Innospec undertakes no obligation
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Contacts:
Brian Watt
Innospec Inc.
+44-151-355-3611
Brian.Watt@innospecinc.com
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