Chemicals firm Huntsman buying Rockwood businesses for $1.1B
Acquiring performance additives, titanium dioxide units to make pigments business more competitive
THE WOODLANDS, Texas—Chemical maker Huntsman Corp. will pay $1.1-billion in cash to buy two businesses from Rockwood Holdings that it said will make its pigments business more competitive.
Huntsman said it also will assume $225-million in unfunded pension liabilities as part of the acquisition of performance additives and titanium dioxide businesses from Rockwood Holdings Inc.
Texas-based Huntsman said it expects the deal to add about 60 cents per share to its annual earnings.
It also said the purchase will give it a broader product range that includes colour pigments, functional additives and specialty titanium dioxide pigments.
Products from the Rockwood businesses are used in construction, plastics, inks, food and cosmetics among other areas.
The companies expect the deal to close in the first half of next year.
Huntsman plans to pursue a public offering of the newly combined pigments business within two years of the deal’s completion.
Huntsman’s companies make products for industries including plastics, automotive, construction, technology and packaging.
Rockwood Holdings, based in Princeton, N.J., makes specialty chemicals and advanced materials for customers including the auto, electronics and construction industries.