Huntsman Corp. is paying 1.1 billion in cash to purchase two businesses from Rockwood Holdings. They say it will make their pigments business more competitive. They will also assume $225 million in unfunded pension liabilities. It is a part of the acquisition for performance additives and titanium dioxide, the businesses from Rockwood Holdings Inc.
Huntsman Chemicals also has a location in Chesapeake, Virginia. This deal is expected to add about 60 cents per share to its annual earnings. This purchase will also give it a broader product range, including color pigments, functional additives and specialty titanium dioxide pigments. Rockwoods products are used in construction, plastics, inks, food and cosmetics, and other areas.
The deal is expected to close in the first half of next year. They intend to pursue a public offering of the newly combines pigments business within two years of the completion of the deal. Huntsman Chemicals makes products for plastics, automotive, technology, packaging, and construction. Rockwood Holdings is located in Princeton, New Jersey. Huntsman's shares closed at $19.14 on Monday and have climbed about 20 percent so far this year. Rockwood's stock is up about 35 percent in 2013, it closed at $66.61 per share.