Huntsman Corp. has announced plans to combine its pigment business with Rockwood Holdings Inc's as part of a $1.1 billion deal and eventually take the business public.
Huntsman said its purchase of Rockwood's titanium dioxide business would make it the world's second-largest producer of the chemical, a key ingredient for white paint and coatings.
As part of the deal, it will also buy Rockwood's businesses that make color pigments, and chemicals for timber and water treatment and rubber compounding.
The businesses being bought by Huntsman contributed $1.54 billion in revenue for the year ended June 30.
Huntsman will take the combined pigments business public within two years of the deal's closing, which is expected to be during the first half of the next year.