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(Rick Egan | Tribune file photo) Chemical maker Huntsman Corp., based in Texas and Utah, 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 Corp. to buy Rockwood businesses for $1.1B
Cash purchase » Products are used in construction, plastics, inks, food and cosmetics.
First Published Sep 17 2013 09:49 am • Last Updated Feb 14 2014 11:34 pm

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 Tuesday 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.

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Huntsman, based in Texas and Utah, 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 color 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.

"In addition to creating a $3 billion Pigments leader, we believe this public offering will allow greater investor focus and appreciation for our differentiated businesses," Peter R. Huntsman, president and CEO, said in a statement.  

He said he company was "well on our way" to achieving the previously announced $220 million in annual savings through restructuring of existing business and that capital projects now underway also will increase the company’s future earnings potential."

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.

Shares of Huntsman closed at $19.14 on Monday and have climbed about 20 percent so far this year. Rockwood’s stock closed at $66.61 and has jumped about 35 percent in 2013.

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