Huntsman makes $415m bid for certain Tronox assets

31 August 2009 10:44  [Source: ICIS news]

LONDON (ICIS news)--Huntsman has signed a “stalking horse” asset and purchase agreement to buy certain assets of bankrupt company Tronox for $415m (€290.5m), the US chemicals company said on Monday.

The company has agreed to buy titanium dioxide facilities in the Netherlands and the US (excluding Savannah, Georgia); electrolytic production facilities in the US; and a 50% joint venture interest in a titanium dioxide facility in Australia and its associated mining operations, Huntsman said in a statement.

A stalking horse bid is a binding offer made for a bankrupt company’s assets but it is subject to a higher bid being made through an auction process. Any offer has to be approved by the bankruptcy court.

“This acquisition, even before expected synergies, would be immediately accretive to our operating earnings and cash flow, as well as reduce our debt leverage,” said president and CEO of Huntsman Corporation Peter Huntsman.

“By combining our existing pigments division with these assets, we also can realise substantial efficiencies that will benefit the customers, vendors, employees and other stakeholders of the combined business,” he added.

Huntsman said the deal would be financed with approximately 50% debt.

Tronox and some of its subsidiaries filed for Chapter 11 bankruptcy on 12 January this year.

($1 = €0.70)

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