Chemicals firm Huntsman buying Rockwood businesses for $1.1 billion

Chemical maker Huntsman Corp. will pay US$1.1 billion in cash to buy two businesses from Rockwood Holdings that it said will make its pigments business more competitive.

According to Texas-based Huntsman, it will also assume $225 million in unfunded pension liabilities as part of the acquisition of performance additives and titanium dioxide businesses from Rockwood Holdings Inc. Huntsman 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.

Rockwood Holdings, based in Princeton, N.J., makes specialty chemicals and advanced materials for customers including the auto, electronics, and construction industries.