Thursday, November 27th3.9°C
23286
22916

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

24053


Recent Trending




Today's Market
S&P TSX15008.41-30.00
S&P CDNX765.38-5.68
DJIA17827.7512.81
Nasdaq4787.317+29.065
S&P 5002072.83+5.80
CDN Dollar0.8851-0.0038
Gold1193.50-3.10
Oil72.56-1.13
Lumber327.90-1.60
Natural Gas4.295+0.144

 
Okanagan Companies
Pacific Safety0.160.00
Knighthawk0.01-0.005
QHR Technologies Inc1.32-0.02
Cantex0.04-0.005
Anavex Life Sciences0.171-0.004
Metalex Ventures0.03-0.005
Russel Metals31.37-0.13
Copper Mountain Mining2.17+0.01
Colorado Resources0.12-0.01
ReliaBrand Inc0.0134-0.0001
Sunrise Resources Ltd0.045-0.005
Mission Ready Services0.34+0.015

 
24130


23457

FEATURED Property
2115238#403 - 770 Rutland Road
2 bedrooms 2 baths
$275,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Second marriage issues

It is not unusual that one or both of the parties planning to marry are approaching marriage for the second time. There are pluses and minuses to this new situation. On the plus side, individuals ente...


The last great Canadian tax shelter

A guide to how flow-through fund limited partnerships can mightily aid your tax planning!The end of the year will raise concerns among many professionals, self-employed persons, business owners and ev...


What I learned in China: Part 2

As per my previous article on my visit to China, we have much to learn about and from their people. It is potentially the largest market on earth with 1.3 billion people in one country but much will d...

_



24231

24185


Member of BC Press Council


22707