The Woodlands-based corporation Huntsman announced Aug. 9 that it will be selling its textile effects division in 2023.

According to a news release from Huntsman, the company has entered into an agreement to sell the division, which focuses on textile dyes, textile chemicals and digital inks, to Archroma, a portfolio company of SK Capital Partners, for $718 million.

The news release also states the textile effects division will be reported as discontinued in the third quarter of 2022, and the transaction is anticipated to be completed in the first quarter of 2023.

"Over the past seven months, we have conducted a comprehensive strategic review of our textile effects division, including detailed discussions with a wide range of relevant parties," Peter Huntsman, chair, president and CEO of Huntsman, said in the release. "After evaluating several different options and thoroughly reviewing prospective offers for the business, our board of directors decided that SK Capital would be a better owner of the business over the long term than Huntsman and that the value they offered was in the best interests of our shareholders. After closing, textile effects will combine with SK Capital's Archroma business to create a world leader in textile chemicals and dyes with a leadership in sustainability and innovation."

Information from The Woodlands Area Economic Development Partnership states Huntsman is the 11th largest nonretail employer in the area with 971 employees as of the February report.