Chemical maker Huntsman Corp. is paying $1.1 billion in cash to buy two businesses from Rockwood Holdings that it says will make its pigments segment more competitive.
Huntsman says 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., based in Princeton, N.J.
Texas-based Huntsman says the deal will give it a broader product range that includes color pigments, functional additives and specialty titanium dioxide pigments. The companies expect the deal to close in the first half of next year.
It plans to pursue a public offering of the newly combined pigments business within two years of the deal's completion.
Huntsman's companies make products for industries including plastics, automotive, construction, technology and packaging.