Huntsman Corp., The
Woodlands, TX, has announced the signing of a “stalking horse” asset and equity
purchase agreement pursuant to which its wholly-owned subsidiary Huntsman
Pigments LLC has agreed to acquire certain assets of Tronox Inc. and its
subsidiaries.
Huntsman Corp., The
Woodlands, TX, has announced the signing of a “stalking horse” asset and equity
purchase agreement pursuant to which its wholly-owned subsidiary Huntsman
Pigments LLC has agreed to acquire the following assets of Tronox Inc. and its
subsidiaries under Section 363 of Chapter 11 of the U.S. Bankruptcy Code:
- Titanium dioxide
facilities in The Netherlands and the United States (excluding Savannah,
Georgia);
- A 50% joint venture interest in another titanium dioxide facility in
Australia and associated mining and other operations; and
- Electrolytic production facilities in the United States.
Huntsman’s bid provides for
a purchase price of approximately $415 million, including working capital.
Huntsman intends to finance
approximately fifty percent of the purchase price with debt.
The agreement will be
submitted for approval to the United States Bankruptcy Court for the Southern
District of New York.
Peter Huntsman, president and
CEO of Huntsman Corp., said, “We look forward to the prospect of acquiring
these assets. This acquisition, even before expected synergies, would be
immediately accretive to our operating earnings and cash flow, as well as
reduce our debt leverage. By combining our existing Pigments division with
these assets, we also can realize substantial efficiencies that will benefit
the customers, vendors, employees and other stakeholders of the combined
business.”
Tronox and certain of the
company’s subsidiaries filed voluntary petitions for reorganization under
Chapter 11 of the U.S. Bankruptcy Code on January 12, 2009. A stalking horse
bid is a binding proposal for a bankrupt company’s assets from an interested
buyer chosen by the bankrupt company, subject to a higher offer through an
auction process approved by the bankruptcy court. If Huntsman is ultimately
approved by the bankruptcy court as the buyer and the sale is approved,
Huntsman’s completion of the proposed acquisition of the assets of Tronox as
agreed remains subject to customary antitrust and other regulatory approvals.
For more
information, visit
www.huntsman.com.
