Huntsman Divests Gomet Business in Italy to Enhance Financial Flexibility

THE WOODLANDS, Texas – Global chemicals manufacturer Huntsman Corporation has announced the sale of its Italy-based automotive aftermarket business, Huntsman Gomet, to Sweden's Trelleborg Group for approximately €42.5 million ($50 million). The transaction marks another strategic step by Huntsman to streamline its operations, strengthen its balance sheet, and improve overall liquidity.

Strategic Sale Supports Debt Reduction Goals

According to Huntsman, the proceeds generated from the sale will be primarily used to reduce the company's outstanding borrowings. The move reflects management's ongoing focus on improving financial flexibility amid a challenging global economic environment and evolving industrial demand patterns.

The divestiture is part of Huntsman's broader strategy to optimize its portfolio by focusing on core businesses while exiting operations that are no longer considered central to its long-term growth objectives.

Details of the Transaction

Under the agreement, Trelleborg Group will acquire Huntsman Gomet, a manufacturing operation located in Azeglio, Italy. The business specializes in producing molded rubber and thermoplastic components used in the automotive aftermarket sector. The transaction remains subject to customary post-closing adjustments.

Gomet has operated as part of Huntsman's Polyurethanes division and has built a reputation as a supplier of specialized automotive components serving customers across Europe and other international markets.

Background of Huntsman Gomet

Huntsman originally acquired Gomet in 2014 through its acquisition of Rockwood Holdings' performance additives and related businesses. Since then, the company has operated within Huntsman's Polyurethanes segment, contributing specialized expertise in automotive aftermarket manufacturing.

The business manufactures a range of molded rubber and thermoplastic products that support vehicle maintenance and replacement parts markets. These products are widely used across multiple automotive applications where durability and performance are critical.

Financial Performance of the Business

In 2025, Huntsman Gomet generated approximately €24 million in revenue. While the operation represented a relatively small portion of Huntsman's overall business portfolio, the sale enables the company to unlock value and redirect resources toward strategic priorities and debt reduction initiatives.

The sale price of €42.5 million represents a significant monetization of the asset and provides Huntsman with additional financial resources at a time when many industrial companies are prioritizing cash preservation and balance sheet strength.

Trelleborg Expands Automotive Components Portfolio

For Trelleborg Group, the acquisition strengthens its position within the automotive components market and expands its manufacturing capabilities in Europe. The addition of Gomet is expected to complement Trelleborg's existing portfolio of engineered polymer solutions and automotive products.

Industry analysts view the transaction as strategically beneficial for both companies. Huntsman gains liquidity and financial flexibility, while Trelleborg acquires an established manufacturing operation with specialized expertise and customer relationships.

Advisors Involved in the Deal

Huntsman received support from several professional advisors during the transaction process.

Financial Advisor

Houlihan Lokey acted as the financial advisor to Huntsman Corporation, providing valuation, transaction structuring, and strategic advisory services.

Legal Counsel

Freshfields LLP served as legal counsel, assisting with contractual negotiations, regulatory considerations, and closing procedures.

Huntsman's Broader Business Profile

Huntsman Corporation is a globally recognized manufacturer and marketer of diversified chemical products serving numerous industrial and consumer markets. The company produces thousands of chemical products that are used in industries ranging from construction and aerospace to automotive, coatings, electronics, and energy.

For 2025, Huntsman reported approximately $6 billion in revenue from continuing operations. The company operates more than 55 manufacturing, research, development, and operational facilities across approximately 25 countries and employs around 6,000 people worldwide.

Market Implications and Investor Perspective

The divestiture demonstrates Huntsman's commitment to disciplined capital allocation and portfolio management. Investors generally view asset sales positively when proceeds are directed toward reducing debt and strengthening financial stability.

By lowering outstanding borrowings, Huntsman may improve key financial metrics such as leverage ratios and interest expense coverage. These improvements can potentially enhance the company's ability to invest in growth initiatives, pursue strategic opportunities, and navigate periods of economic uncertainty.

Additionally, the transaction highlights an ongoing trend across the chemicals industry, where companies are increasingly evaluating non-core assets and pursuing portfolio optimization strategies to maximize shareholder value.

Industry Outlook

The global chemicals sector continues to face various challenges, including fluctuating raw material costs, changing automotive demand, evolving environmental regulations, and macroeconomic uncertainty. Against this backdrop, companies like Huntsman are focusing on operational efficiency, cash flow generation, and strategic portfolio management.

Analysts believe that divestitures such as the sale of Gomet can help companies remain competitive by concentrating resources on higher-growth and higher-margin business segments.

Future Focus for Huntsman

Following the completion of the sale, Huntsman is expected to continue focusing on its core chemical manufacturing operations, particularly within its Polyurethanes, Performance Products, and Advanced Materials businesses.

The company has consistently emphasized cost discipline, operational excellence, and shareholder value creation. Reducing debt through asset sales supports these objectives while providing additional flexibility to respond to future market opportunities.

Conclusion

The sale of Huntsman Gomet to Trelleborg Group represents a strategically important transaction for Huntsman Corporation. By monetizing a non-core automotive aftermarket business for approximately €42.5 million, the company gains valuable liquidity and strengthens its balance sheet through debt reduction. Meanwhile, Trelleborg expands its presence in the automotive components market with the acquisition of a specialized manufacturing operation.

As Huntsman continues to optimize its portfolio and focus on core growth areas, the transaction underscores management's commitment to improving financial performance, enhancing shareholder value, and positioning the company for long-term success in a competitive global chemicals industry.

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