Chase Capital Partners and a management team plan to buy film and flexible packaging giant Huntsman Packaging Corp. in a $1.07 billion deal. Jon Huntsman, the major Huntsman Packaging shareholder with a 61 percent stake, said late last year he planned to sell his portion of the business to raise money for charities. Huntsman Packaging announced the sale agreement April 1.
The deal is to be completed by the end of May.
Timothy Walsh, general partner with Chase Capital Partners, said his company will have the controlling interest in Huntsman Packaging but he did not disclose any further ownership details. Chase Capital will pay cash for its share, he said in a telephone interview from his firm's New York office.
Chase Capital and a Huntsman Packaging management group are buying Jon Huntsman's 61 percent share. Currently, 35 percent of the firm is owned by Richard Durham, son-in-law of Huntsman Corp.'s President and Chief Executive Officer Jon Huntsman, and Durham's wife, Christena Huntsman Durham. Other members of senior management now hold the other 4 percent.
Walsh said Chase Capital is interested in Huntsman Packaging because "it is a market leader, has a great management team and has demonstrated a great track record to grow as fast or faster than their industry."
Huntsman Packaging sales have tripled in the past three years through acquisitions and internal growth and Walsh expects it to grow in North America and around the world with similar strategies. The business logged pro forma sales of $820 million and net income of $18.5 million in 1999.
Richard Durham will continue as president and CEO of Huntsman Packaging and will add the title of chairman, now held by Jon Huntsman. Durham said in an interview that Huntsman Packaging will pursue value-added acquisition opportunities but he would not elaborate on plans.
Chase Capital is a private equity partnership with more than $15 billion under management in 950 investments in North America, Europe, Asia and Latin America. Chase Manhattan Corp. is Chase Capital's major limited partner.
Walsh said Chase Capital's Huntsman Packaging stake will be one of its bigger investments but not its largest.
Chase Capital also is a "significant shareholder" of custom injection molder Berry Plastics Corp. of Evansville, Ind.