Rockwood and Kemira Close TiO(2) Joint Venture
Monday September 1, 1:00 am ET
PRINCETON, N.J.--(BUSINESS WIRE)--Rockwood Holdings, Inc. and Kemira Oyj today announced the completion of the formation of their previously announced joint venture, creating one of the world’s leading producers of specialty titanium dioxide pigments.
The joint venture combines Rockwood’s titanium dioxide pigments and functional additives business and Kemira’s titanium dioxide business. The new company, which operates as Sachtleben, as it operated under Rockwood, is the leading producer of specialty titanium dioxide pigments for the synthetic fiber industry, specialty titanium dioxide pigments for packaging inks and specialty titanium dioxide grades for the cosmetics, pharmaceutical and food industries. Sachtleben is also the world's largest producer of synthetic barium sulfate specialties and holds a unique position in the field of zinc sulfide pigments. Among the joint venture’s competitive advantages are that both companies’ production is based on the sulphate process, and both have strong capabilities in the development of nanoparticles for specialty applications.
Commenting on the new venture, Seifi Ghasemi, chairman and chief executive officer of Rockwood, said, “This joint venture is a strategically important step that combines two of the best TiO2 production facilities in Europe and enables us to expand our specialty TiO2 product offering, increase our ability to meet customer needs and continue to grow our business at our targeted rates. Combining the technology, production and marketing capabilities of both Rockwood and Kemira creates the scale and expertise required to service today’s demanding applications.”
The joint venture, which had pro forma revenues of approximately 556 million Euros for 2007, is headquartered in Duisburg, Germany, and is 61 percent owned by Rockwood and 39 percent owned by Kemira. The joint venture has purchased the titanium dioxide pigments business of Rockwood and Kemira. The transaction was financed with a 250 million Euro term loan, arranged by SEB and Nordea acting as underwriters, proceeds of which go to the parent companies. Credit Suisse Securities (USA) LLC acted in an M&A advisory capacity to Rockwood.
Professor Dr. Wolf-Dieter Griebler, who has been president of Rockwood’s titanium dioxide business, Sachtleben, will head the new joint venture.
Rockwood Holdings, Inc. is a leading global specialty chemicals and advanced materials company. Rockwood has a worldwide employee base of approximately 9,500 people and annual net sales of approximately $3.0 billion. Rockwood focuses on global niche segments of the specialty chemicals, pigments and additives and advanced materials markets.
Source: Rockwood Holdings, Inc.
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