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Arch Chemicals To Acquire Rockwood Holdings' Water Treatment Chemicals Business

Mon. September 08, 2008; Posted: 10:32 AM
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(RTTNews) - Seeking to build on its core biocides portfolio, Arch Chemicals, Inc. (ARJ | Quote | Chart | News | PowerRating) on Monday, agreed to acquire water treatment chemicals business of Rockwood Holdings Inc. (ROC | Quote | Chart | News | PowerRating), which operates under the name of Advantis Technologies, Inc., for $130 million in cash.

Rockwood Holdings is a North American manufacturer and marketer of branded swimming pool, spa and surface water treatment chemicals. Advantis includes the Pool & Spa division, which manufactures and markets non-chlorine based specialty chemicals, and the Surface Water division, which manufactures a range of products and provides services for controlling algae and nuisance aquatic vegetation in lakes, ponds, reservoirs, irrigation and drainage canals.

Advantis employs approximately 160 people and it generated sales of $71 million and EBITDA of $12 million in 2007.

The transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close early in the fourth quarter of 2008. Arch Chemicals expects the transaction to be cash and earnings accretive in the first year. The acquisition is anticipated to result in pretax synergies of about $6 million per year from the integration and leveraging of Rockwood Holdings' water treatment chemicals business with the Arch Water Products business.

According to Arch Chemicals, Rockwood Holdings' water treatment chemicals business will greatly complement its existing capabilities in water treatment.

Commenting on the acquisition, Arch Chemicals' Chairman, President and CEO Michael Campbell said, "The Pool & Spa division expands and improves our participation in the specialty pool and spa dealer channel as well as with pool industry distributors, adding products and technologies that complement Arch's existing product portfolio. In addition, we are very excited to acquire Advantis' specialty formulations and technology, permitting us to supply additional product offerings to our mass retail customers. The Surface Water division supports our strategy of growing our non-residential water business."

In a separate press release, Rockwood Holdings noted that the sale of its pool and spa chemicals business is in line with its overall strategy of divesting. Rockwood Holdings said that Advantis is a much better fit for Arch Chemicals.

ROC is currently up 4.36% trading at $35.89 on a volume of 61,679 shares. ARJ is up 3.21% at $36.37 on a volume of 10,800 shares.

For comments and feedback: contact editorial@rttnews.com Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved

For full details on Arch Chemicals Inc (ARJ) click here. Arch Chemicals Inc (ARJ) has Short Term PowerRatings of 7. Details on Arch Chemicals Inc (ARJ) Short Term PowerRatings is available at This Link.

    


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