Rockwood Holding Inc.
) has completed the sale of Clay-based Additives, a part of its
Performance Additives division, to Germany's Altana Group.
Rockwood received net cash proceeds of over $600 million (after
all transaction adjustments, fees and taxes) from the $635
million transaction. The deal was announced in Jul 2013.
) acted as Rockwood's financial advisor for the deal.
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The clay based additives business develops and manufactures
specialty rheology modifiers and additives. The business is one
of the world's leading suppliers of rheology additives that
optimize the flow characteristics of various materials. Rheology
additives are used in coatings, construction materials, and
personal care products and are also used for a variety of
applications. It ensures that coatings have the right viscosity
and can be applied without forming droplets or bubbles.
The clay-based additives business is a relatively small business
of Rockwood and accounted for only 5% of its annual revenues in
2012. The business had net sales of $191.4 million for the last
year. The divestment of this business was Rockwood's long term
business strategy to maximize shareholder value.
On the other hand, the acquisition is accretive to Altana as it
not only opens up new growth opportunities for the company but
also emphasizes its strategic focus on profitable growth. Altana
develops and produces high-quality, innovative products in the
specialty chemicals business, matching specialty products for
coating manufacturers, paint and plastics processors, the
printing and cosmetic industries, and the electrical and
Rockwood is a leading global specialty chemicals and advanced
materials company. Recently, the company announced the
divestiture of its Titanium Dioxide (TiO2) Pigments and four
other non-strategic businesses to
Rockwood currently holds a Zacks Rank #5 (Strong Sell). Another
company in the specialty chemical space with favorable Zacks Rank
) with a Zacks Rank #1 (Strong Buy).