Saturday, December 20th0.9°C
24562
23875

Specialty chemicals company Albemarle buying Rockwood in cash-and-stock deal valued at $6.2B

BATON ROUGE, La. - Specialty chemicals company Albemarle is buying counterpart Rockwood Holdings Inc. in a cash-and-stock deal valued at about $6.2 billion.

Rockwood shareholders will receive $50.65 in cash and 0.4803 of a share of Albemarle common stock for each share they own. The deal values Rockwood at $85.53 per share.

There has been some consolidation in the sector in recent years and heavyweights like Dow Chemical focus more on higher-margin specialty chemicals. To compete and lower costs, competitors are growing through significant acquisitions.

Huntsman in September announced it would spend more than a billion to acquire Rockwood Holdings, based in Princeton, N.J. The company makes specialty chemicals and advanced materials for customers including the auto, electronics and construction industries.

Cabot Corp. bought the Dutch company Norit NV for $1.1 billion to strengthen its specialty chemicals portfolio.

Eastman Chemical spent more than $3 billion on Solutia, a St. Louis company that makes materials and specialty chemicals used in the automotive and architectural industries.

Albemarle Corp., based in Baton Rouge, said Tuesday that it expects about $100 million in annual cost savings by 2016 through its acquisition of Rockwood. It anticipates maintaining its current quarterly dividend and lowering debt in the near-term.

Albemarle shareholders will own approximately 70 per cent of the combined business, with Rockwood stockholders owning the remaining 30 per cent.

The boards of both companies have approved the deal, which is targeted to close in the first quarter of next year. It still needs shareholder approval.

The combined company will operate under the Albemarle name. Albemarle President and CEO Luke Kissam will serve in those same roles for the combined business. The board will include eight Albemarle directors and three Rockwood directors. Jim Nokes will remain Albemarle's non-executive chairman.

Rockwood is based in Princeton, New Jersey.

The Canadian Press


Read more Business News

24304


Recent Trending




Today's Market
S&P TSX14468.26+121.51
S&P CDNX676.54+11.04
DJIA17804.8026.65
Nasdaq4765.38+16.983
S&P 5002070.65+9.42
CDN Dollar0.8618+0.0001
Gold1197.20+2.50
Oil56.50+2.39
Lumber336.20-0.70
Natural Gas3.446-0.196

 
Okanagan Companies
Pacific Safety0.12-0.01
Knighthawk0.01-0.005
QHR Technologies Inc1.25-0.03
Cantex0.03-0.005
Anavex Life Sciences0.1726+0.0026
Metalex Ventures0.05-0.005
Russel Metals25.58-0.42
Copper Mountain Mining1.55-0.02
Colorado Resources0.120.00
ReliaBrand Inc0.011-0.0089
Sunrise Resources Ltd0.05-0.005
Mission Ready Services0.215-0.01

 
24130


23041

FEATURED Property
19965551532 Marina Way, Kelowna, British Columbia
4 bedrooms 3 baths
$925,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


My final thoughts on real estate

This will be the last column I write on real estate. Largely because at the end of the year I will be handing in my license. After 20+ years of working in land development, resort development and rea...


Reflecting on the end of the year

The importance of the end of the year and the Christmas holidays is profound. It is a time to reconnect with family and traditions that have made us who we are. But the year-end has always been a time...


Parenthood: Estates, insurance & taxes

It is now even more important to ensure your loved ones are well looked if anything should happen to you. Here are a few topics to consider helping you prepare for some of the unexpected events that c...

_








Member of BC Press Council


23911