Rockwood Holdings, Inc. announced that Rockwood has signed a definitive agreement to acquire the global color pigments business of Elementis plc for approximately $140 million. The business had sales of approximately $172 million and EBITDA of $18 million in 2006.
The transaction includes Elementis production facilities in the U.S., the UK and China. The transaction is subject to approval by appropriate regulatory authorities.
“This acquisition is in keeping with our strategy to grow both organically and by bolt-on acquisitions,” said Seifi Ghasemi, Rockwood chairman and CEO. “The expected synergies with the Elementis business will give us the ability to serve our customers on a more cost-effective basis.
“The combination of our color pigment business with that of Elementis will result in a leading global producer of color pigments, with a more cost-effective production base and a full range of products and services for concrete, coatings and other specialty applications,” Mr. Ghasemi added. “The two companies have complementary product lines and production facilities, providing customers with a broader choice as well as global sourcing. The combined business will have expanded production presence in China, in addition to the U.S. and Europe.”
“This transaction confirms the success of our restructuring initiatives in the pigments division, which has delivered steadily improving results in a highly competitive environment,” David Dutro, chief executive of Elementis, said. “This offer recognizes the value that has been created in this division, and as such, we believe that it represents an attractive proposition for our shareholders. Completion of this transaction will also be in line with our declared strategic intent to focus more of the group’s resources on the specialties business.”