Rockwood, Kemira form pigments venture in Europe
Thursday May 22, 10:10 am ET
Rockwood and Kemira form Europe-based joint venture to produce specialty Tio(2) pigments
PRINCETON, N.J. (AP) -- Rockwood Holdings Inc. and Finland's Kemira Oyj said they are forming a venture that will produce specialty TiO(2) pigments, which are used in synthetic fibers, cosmetics, pharmaceuticals and food.
Rockwood said late Wednesday the venture will buy its Sachtleben Chemie business, which includes production facilities in Duisburg, Germany, and Kemira's TiO(2) pigments business, including its TiO(2) plant in Pori, Finland.
Rockwood will own 61 percent of the venture, to be headquartered in Germany. The venture will be funded with a 300 million euro ($468 million) term loan and a 30 million euro ($47 million) revolving loan.
Kemira will own the remaining 39 percent. On a pro forma basis, the venture posted revenue of about 556 million euros ($867 million) last year.
Rockwood will retain Sachtleben's water treatment business.
Wolf-Dieter Griebler, president of Rockwood's TiO(2) business, Sachtleben, will lead the joint venture, which is subject to subject to regulatory approval.
The companies expect to close the joint venture in the third quarter.
In morning trading, shares of Rockwood Holdings added 11 cents to $35.90.
Source: Associated Press
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