Huntsman to Buy Tronox Assets for $415M

THE WOODLANDS, Texas (TheStreet) -- Chemicals company Huntsman(HUN Quote) signed a "stalking horse" agreement to acquire certain assets of bankrupt titanium-dioxide maker Tronox for $415 million.

Huntsman said it is buying titanium-dioxide facilities in the Netherlands and the U.S., excluding Savannah, Ga., Georgia; a 50% joint venture interest in another titanium dioxide plant in Australia; and electrolytic production facilities in the United States.

Huntsman plans to finance about half of the purchase price with debt, the company said in a statement Monday.

The acquisition, if approved by the bankruptcy court, would make Huntsman the second-largest titanium-dioxide manufacturer behind DuPont(DD Quote), according to the Wall Street Journal. The newspaper also says despite Tronox and Huntsman agreeing to terms another buyer could top Huntsman's bid under the "stalking horse" pact.

"We look forward to the prospect of acquiring these assets," said CEO and President Peter Huntsman in a press release. "This acquisition, even before expected synergies, would be immediately accretive to our operating earnings and cash flow, as well as reduce our debt leverage."

Tronox, which filed for bankruptcy protection in January, has more than $1 billion in annual sales.

-- Reported by Joseph Woelfel in New York .

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