Olin and Huntsman: Merger to form US$12.5bn Chemicals Giant

Olin and Huntsman announced that they have entered into a ‘merger of equals’ to create a leading North American chemicals company. The combined organisation will be renamed OlinHuntsman Corporation. 

Combined, Olin, a specialised chemical manufacturer and owner of Winchester Ammunition, and Huntsman, also a chemicals company, would have 2025 revenue of approximately US$12.5bn. 

Chemical companies are under increasing pressure from regulations while facing soaring energy costs and workforce shifts. A report from McKinsey highlighted that after years of outperforming the rest of the market, the chemicals industry’s returns are lagging.

Olin and Huntsman merger

Huntsman says following the close of the transaction, the combined company will benefit from enhanced scale, scope and expanded chlorine optionality, enabling it to create value across markets and cycles.

Peter Huntsman, Chairman, President and Chief Executive Officer of Huntsman, says: “The opportunities this merger creates enable us to generate greater value for our shareholders, deliver exceptional service and products for our customers and provide greater stability and opportunities for our associates.

“This merger of equals takes two great companies and creates a much stronger global leader.”

Olin’s ammunition business, Winchester, which supplies sporting, law enforcement and military customers, will continue to operate as a business within the combined company.

Combined manufacturing capabilities

Huntsman operates more than 55 manufacturing, research and development and operations facilities in 25 countries and employs roughly 6,000 associates.

Across its three business segments: Olin Chlor Alkali Products & Vinyls, Olin Epoxy and Winchester Ammunition, Olin employs 7,700 professionals in more than 15 countries and operates tens of plants across its core business sectors. 

It operates in more than 25 locations in the US, has production sites in Latin America, with four manufacturing sites across Europe, the Middle East, Africa and India regions, as well as a manufacturing facility in China. 

The combined company would operate with roughly 13,700 employees across an expansive global network of dozens of facilities. Together Olin and Huntsman would have 2025 revenue of approximately US$12.5bn on a combined company basis.

US chemicals manufacturing

A report from McKinsey highlighted that for most of the past 20 years, the chemicals industry has generated returns above those of the broader capital markets.

However, the consulting firm noted, after reaching record heights during the COVID-19 pandemic, the chemicals industry may be facing a new era: global indexes have increased 24% per year since late 2022, while chemicals stocks grew less than 2% per year over the same period.

Facing new regulations, overbuilt capacity, high energy prices, regionalisation, inflation, workforce and demographic shifts, chemicals companies may be looking for new ways to add value. 

The closure of the Strait of Hormuz has also severely disrupted the global flow of oil and petrochemicals. 

Peter added, discussing the merger: “As our industry continues to globalise, we compete more today against countries, than companies, trade policies and global supply chains than ever before.”

What the companies will bring to OlinHuntsman

Among other things, Olin is a manufacturer of small calibre ammunition, a global chlor alkali producer and North American seller of chlorine, bleach, and hydrochloric acid. Huntsman is a leading producer of polyurethanes, advanced materials and performance products. 

The combination will integrate Olin's manufacturing and feedstock capabilities, including chlorine and caustic soda, with Huntsman's downstream products and formulation expertise.

Ken Lane, President and Chief Executive Officer of Olin, who will lead the combined company, says: “This combination provides a compelling opportunity for Olin and Huntsman to create a more resilient and value-focused chemicals company anchored in North America.

"Huntsman has built an impressive portfolio of polyurethane systems, formulation technologies and advanced materials serving technical, application-driven end markets.” 

Huntsman says the two companies' portfolios and enhanced geographic footprint, including a significant presence in the US Gulf Coast, will position OlinHuntsman to capitalise on regional sector dynamics. This, along with its presence in Europe and Asia, will enable it to better serve customers across key markets.

Ken adds: “I'm excited by the opportunity to lead OlinHuntsman and deliver long-term value for our shareholders, customers, employees and communities.”