<b>Huntsman Acquires CVC Thermoset Specialties: Expanding Specialty Chemicals Portfolio</b>

Huntsman announced yesterday that it has reached an agreement to acquire CVC Thermoset Specialties. CVC Thermoset Specialties is a North American producer of specialty chemicals serving the industrial composites, adhesives and coatings markets. CVC Thermoset Specialties is a subsidiary of Emerald Performance Materials, Inc., which is majority owned by an affiliate of American Securities LLC.

CVC Thermoset Specialties has annual revenue of approximately $115 million and currently has two plants located in Akron, Ohio and Maple Shade, New Jersey. Under the terms of the agreement, Huntsman will pay an acquisition price of US$300 million, subject to final adjustments for working capital and other effects. The transaction is an all-cash transaction, and the source of funds is the company's available current assets. The acquisition price is equivalent to about 10 times the adjusted EBITDA for the full year of 2019, or about 7 to 8 times the estimated synergy benefits. To achieve higher returns, stable growth in growth markets must be ensured. Under the terms of the agreement, Huntsman will pay an acquisition price of US$300 million, subject to final adjustments for working capital and other effects. The transaction is an all-cash transaction, and the source of funds is the company's available current assets. Closing of the transaction is expected in mid-2020.

Scott Wright, President of Huntsman's Advanced Materials Division, said: "The acquisition of CVC Thermoset Specialties will introduce advanced technologies to our division's product portfolio that perfectly complement our product portfolio. The company has unique offerings, will make systems using our best-in-class epoxy resin materials more robust and durable.The company also produces special-purpose tougheners, curing agents and other additives that are used in a wide range of composites, adhesives and Coating products. This acquisition will strengthen our market position in North America. We will use existing resources and channels to sell in Europe and Asia to quickly promote the high-quality products of CVC Thermoset Specialties. This acquisition will further Enhance our ability to offer differentiated products to customers, particularly through our strong formulations business."

Peter Huntsman, Chairman, President and Chief Executive Officer added: "This bolt-on acquisition complements our advanced All the criteria for an acquisition in the materials sector, which involves new technologies, synergies and global rollout. Currently, the EBITDA margin of the acquired company is already over 25%. We expect to achieve clear synergies within two years.

"The current market environment is full of uncertainties. But with our strong financial position, we will continue to look for such acquisitions while maintaining strong cash flow and repurchasing shares when appropriate. We will continue to work hard to maintain a balanced capital allocation.

Since the beginning of the year, we have taken advantage of the depressed stock price to repurchase approximately $85 million worth of stock. While it is difficult to predict earnings in the coming months, first quarter results are on track to meet the forecast we made on our February 13 earnings call. "