Huntsman to buy Rockwood Holdings's paint pigments and additives business for $1.1 bn
17 Sep 2013
US chemical company Huntsman Corp today said that it would buy Rockwood Holdings Inc's paint pigments and performance additives businesses, for $1.1 billion in cash.
Under the terms of the deal, Texas-based Huntsman will pay approximately $1.1 billion in cash and assume unfunded pension liabilities estimated at $225 million as of 30 June.
Rockwood's Performance Additives and TiO2 business includes the manufacture and supply of sulphate process TiO2, synthetic iron-oxide and other organic pigments, timber treatment products and specialty automotive materials.
Applications for these products are used in coatings, construction, concrete, plastics, papers, inks, food, cosmetics, pharmaceuticals, fibres and films.
The acquisition will make Huntsman the second-largest global producer of TiO2 and inorganic color pigments.
Huntsman said that acquisition will generate cost savings of $130 million annually by the end of 2015 and would take the combined pigments business public within two years of the deal's closing.
Peter Huntsman, president and CEO of Huntsman, said, "This acquisition provides a unique opportunity to unlock value within our Pigments business and builds on the strong improvements we have made to its competitiveness. With this combination we will be better positioned to serve customers through a broader product range including color pigments, functional additives and specialty TiO2 pigments.
"In addition to creating a $3 billion Pigments leader, we believe this public offering will allow greater investor focus and appreciation for our differentiated businesses. These remaining divisions continue to enjoy record financial performance and global growth,'' he added.
Huntsman is a global manufacturer of differentiated chemicals. It manufactures products for a variety of global industries, including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.
Originally known for pioneering innovations in packaging and, later, for rapid and integrated growth in petrochemicals, Huntsman has more than 75 manufacturing and R&D facilities in 30 countries, has around 12,000 employees and posted revenues of over $11 billion last year.