Huntsman Corp. (The Woodlands, Tex.; www.huntsman.com) and Rockwood Holdings, Inc. have announced that they 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. According to Peter R. Huntsman, president and CEO of Huntsman, this acquisition will allow Huntsman to become the second-largest global producer of TiO2.
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, fibers and films. Financing commitments are in place to fund the acquisition. The transaction remains subject to regulatory approvals and customary closing conditions and is expected to close in the first half of 2014.