Huntsman Takes A Spin With TiO

Abstract

Continuing a shake-up in the titanium dioxide pigment industry, Huntsman Corp. has agreed to acquire Rockwood Holdings’ business in TiO2 and several other chemicals. Huntsman plans to combine the Rockwood businesses with its own TiO2 operation and then unload the combination in a public stock offering by 2016. The purchase will cost Huntsman $1.1 billion plus $225 million in Rockwood pension obligations. The businesses employ about 3,300 people worldwide and had sales last year of $1.5 billion. The deal includes operations in iron oxide pigments, wood preservatives, water treatment chemicals, and elastomers; but titanium dioxide, at 66% of sales, is clearly the focus. By combining the Rockwood titanium dioxide business with its own, Huntsman will create the world’s second-largest TiO2 producer after DuPont. TiO2, a white pigment added to almost every can of paint, has become something of a hot potato for Huntsman, Rockwood, and DuPont. It’s a commodity chemical ...