Huntsman Corporation and Rockwood Holdings, Inc., 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 $1.1 billion in cash and assume unfunded pension liabilities estimated at $225 million as of June 30, 2013.
With the move, Huntsman said it will become the second-largest global producer of TiO2 and inorganic color 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. "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."
According to Mr. Huntsman, the transaction represents the next step in the company's long-term value creation strategy for its Pigments business. Huntsman anticipates TiO2
demand will continue to recover in the coming quarters. "During this time we will be focused on strengthening our world-class Pigments business and capturing approximately $130 million in expected annual cost savings, to be fully achieved by the end of 2015," Mr. Huntsman said. " We plan to further unlock value through a public offering of our new combined Pig ments business, which we expect to pursue within two years of completing this acquisition."
Huntsman Corporation is a publicly traded global manufacturer and marketer of differentiated chemicals with 2012 revenues exceeding $11 billion. Its chemical products number in the thousands and are sold worldwide to meet the needs of consumers and manufacturers serving a broad range of end markets. Rockwood Holdings, Inc.,is the parent company of Chemetall Surface Treatment.