Huntsman to buy Rockwood\'s performance additives and TiO2 businesses
$1.1bn transaction will make Huntsman the second largest supplier of TiO2 and inorganic colour pigments worldwide
Huntsman Corporation and Rockwood Holdings have entered into a definitive agreement whereby Huntsman will acquire Rockwood's performance additives and titanium dioxide (TiO2) businesses. Under the terms of the agreement, Huntsman will pay approximately $1.1bn in cash and assume unfunded pension liabilities, estimated at $225m as of 30 June 2013.
Rockwood’s performance additives and TiO2 businesses include the manufacture and supply of sulphate process TiO2, synthetic iron-oxide and other organic pigments.
“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,” said Peter R Huntsman, President and CEO of Huntsman Corporation, of the transaction. “With this combination we will be better positioned to serve customers through a broader product range including colour pigments, functional additives and specialty TiO2 pigments. We will become the second largest global producer of TiO2 and inorganic colour pigments.”
The transaction remains subject to regulatory approvals and customary closing conditions, but is expected to close in the first half of 2014.
Additionally, Huntsman has announced that it plans to unlock further value through a public offering of its combined pigments business, which the company says it will pursue within two years of completing the acquisition. “We believe this public offering will allow greater investor focus and appreciation for our differentiated businesses,” explained Huntsman.