Alpha Gen Capital
Seeking Early Retirement
Sep. 10, 2014, 7:54 AM
- Huntsman (NYSE:HUN) gains EU regulatory approval for its proposed $1.1B purchase of Rockwood Holdings' (NYSE:ROC) titanium dioxide pigment business after agreeing to sell an asset.
- The European Commission says HUN will sell its global TR52 business, which is its main titanium dioxide grade used for printing ink applications, to allay competition concerns.
- HUN is upgraded to Buy from Neutral with a $32 price target, up from $29, at Citigroup.
Sep. 17, 2013, 12:35 PM
- Huntsman (HUN +2.8%) is higher after the chemicals maker agreed to buy Rockwood Holdings' (ROC +1.2%) performance additives and titanium dioxide businesses for $1.1B.
- The deal allows HUN to become the second largest global producer (behind DuPont) of titanium dioxide and inorganic color pigments for uses such as paints and industrial coatings.
- The chemicals industry is emerging from a trough in production and profit, but now things are looking up, and HUN’s estimate on the titanium dioxide assets’ earnings - $200M in 2014 - seems reasonable, an Alembic Global analyst says.
- "There’s a case to be made that they’re not leveraging up for this,” the analyst says; HUN's debt sits above industry norms at ~3.5x EBITDA, but it could bundle its new debt into the pigments assets spinoff when it goes public.
Sep. 17, 2013, 6:59 AM
- As flagged, Huntsman (HUN) has agreed to acquire Rockwood Holdings' (ROC) paint pigments and performance additives businesses for $1.1B in cash.
- Huntsman is also assuming unfunded pension liabilities of $225M, as at June 30.
- Huntsman plans to combine the Rockwood business with its own pigments unit and take the combined entity public within two years of the closing of the deal.
- The transaction is forecast to add $0.60 to Huntsman's EPS, assuming 2014 estimated results and the full impact of expected annual cost savings, which are seen at $130M by 2015.(PR)
Sep. 16, 2013, 11:56 AM
- Rockwood Holdings (ROC +1.6%) is in advanced talks to sell its titanium dioxide business and other pigments units to Huntsman (HUN +2.5%), and a deal could be signed in the next few days, banking and chemicals industry sources tell Reuters.
- The units are being valued at $1B-$1.2B including debt in the negotiations, two of the sources say.
- HUN had been rumored to be interested in Tronox ([[trox]] -0.4%), another top player in the titanium dioxide market.
Jul. 2, 2013, 11:27 AM
Chemical producer Huntsman (HUN -3.6%) is considering a bid for Rockwood Holdings' (ROC +2%) Sachtleben titanium-oxide pigments business, Bloomberg reports. HUN officials are said to have traveled to Germany to conduct due diligence and assess synergies. A deal could ease ROC's thus far unsuccessful attempt to sell its performance additives business.| Jul. 2, 2013, 11:27 AM
Jun. 14, 2012, 2:31 PM