17 September 2013
Details
Huntsman Corporation and Rockwood Holdings, Inc.
have entered into a definitive agreement
whereby Huntsman will acquire
Rockwood's Performance Additives and TiO2 Business
for the purchase price of $1.1 billion in cash
and assume unfunded pension liabilities at $225 million
with the expected transaction completion in the first half of 2014.
Pubilic Offering
- Public offering of the Huntsman and Rockwood
combined Pigments Businesses within two years of close.
Benefit to Huntsman
- Becoming second largest global producer of TiO2 and
inorganic color pigments
Huntsman,
Peter R. Huntsman, President and CEO,
- This acquisition provides a unique opportunity
to unlock value within our Pigment Business and
build on the strong improvements we have made
to its competitiveness.
- With this combination we will be better positoned
to serve customers through a broader products range includind
* color pigments,
* functional additives and
* specialty TiO2 pigments
- We will become the second largest global producer of TiO2 and
inorganic color pigments.
- The transaction announced today is the next step in
our long term value creation strategy for Pigments Business.
- We anticipate TiO2 demand will continue to recover
in the coming quarters, and during this time we will be focused on
strenthening world class Pigments business and
capturing approximately $ 130 million in expected annual cost savings,
to be fully achieved by the end of 2015.
- We plan to unlock value through a public offering of
newly combined Pigments business, which we expect to pursue
within two years of completing this acquisition.
About Rockwood's Performance additives and Tio2 Business
- Rockwood's Performance Additives and TiO2 business include
the manufacture and supply of
* sulphate process TiO2,
* synthetic iron oxide and
* other organic pigments,
* timber treatment products and
* specialty automotive materials.
- Application of these products are used in
* coatings, construction, concrete,
* plastics, paper, ink,
* food, cosmetics and pharmaceuticals,
* fiber and films
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