Huntsman firm is going public

The Salt Lake-based Huntsman group of companies, involved in petrochemicals and packaging, will go public.

Deseret Morning News graphic Huntsman company highlights Requires Adobe Acrobat.

Huntsman, which has operations in 40 countries and annual revenues of about $9.5 billion, made the announcement Monday in a one-paragraph news release. It said the initial public offering's proceeds will be used to repay debt and that existing shareholders are expected to participate in the proposed offering.

The company will file for its IPO with the Securities and Exchange Commission later this year.

"We today have announced a proposed initial public offering of common stock, and we expect to file a registration statement with the SEC during the fourth quarter of 2004," said Huntsman spokesman Don Olsen. "With this announcement, we're officially in our 'quiet period,' and we really can't comment beyond what was in the announcement."

The group's world headquarters are in Salt Lake City, but its administrative headquarters are in Texas. It is run by Jon M. Huntsman Sr., founder and chairman, and son Peter R. Huntsman, president and chief executive officer. Huntsman Sr., 67, was ranked earlier this year by Forbes magazine as 205th on a worldwide list of billionaires, with $2.5 billion.

Jon Huntsman Jr., chairman and CEO of Huntsman Holdings and the Republican candidate for Utah governor, said the family has "been talking about an IPO for many, many years."

"We knew at some point we would do it," he said Monday. "It was just a matter of market timing and when the business was mature enough to roll it out to the public marketplace."

The Huntsman companies have more than 15,000 employees worldwide in six divisions: advanced materials, base chemicals, performance products, pigments, polymers and polyurethanes. Its materials are found in everything from cars, airplanes and footwear to paints, textiles and packaging products.

The clamshell-shaped container for McDonald's Big Mac sandwiches was a creation of Huntsman Container Corp. in 1974.

Last month, the Huntsman companies reported second-quarter earnings before taxes and deductions of $116.3 million, including $170.9 million in restructuring and other charges. That compared with year-earlier earnings before interest, taxes, depreciation and amortization of $156.8 million, including charges of $60.7 million.

But the company has been struggling with debt, which now is about $5.8 billion. Last November, the group said it would take cost-cutting actions to trim at least $200 million over 18 months, with each business segment being affected. That came on the heels of the company reporting a net loss of $88.6 million for the 2003 third quarter.