May 14 2007
Rockwood Holdings, Inc. today announced that Rockwood has signed a definitive agreement to acquire the global color pigments business of Elementis plc (LSE: ELM) for approximately $140 million. The business had sales of approximately $172 million and EBITDA of $18 million in 2006.
The transaction includes Elementis production facilities in the United States, the United Kingdom and in China. The transaction is subject to approval by appropriate regulatory authorities.
In announcing the transaction, Seifi Ghasemi, Rockwood Chairman and Chief Executive Officer, said, “This acquisition is in keeping with our strategy to grow both organically and by bolt-on acquisitions. The expected synergies with the Elementis business will give us the ability to serve our customers on a more cost-effective basis.”
He added, “The combination of our color pigment business with that of Elementis will result in a leading global producer of color pigments, with a more cost-effective production base and a full range of products and services for concrete, coatings and other specialty applications. The two companies have complementary product lines and production facilities, providing customers with a broader choice as well as global sourcing. The combined business will have expanded production presence in China, in addition to the United States and Europe.”