ERJ staff report (TB)
Boston − Cabot Corp. has completed its acquisition of 100-percent control of its Nhumo SA de CV carbon black joint venture in Mexico, paying $105m (€77.6m) for the 60-percent stake it didn't own, reported Tire Business.
Cabot President and CEO Patrick Prevost called the acquisition a "major step forward in our strategy to enhance Cabot's global presence in the carbon black industry….
"From a market perspective, Nhumo has significant opportunities in the growing Mexican market and enables us to create an even stronger presence in North America to further accelerate growth," Prevost said.
Nhumo's plant in Altamira, Mexico, adds 140,000 tonnes of an annual carbon black manufacturing capacity to Cabot's assets, pushing the Boston-based firm's global capacity to more than 2m tonnes annually.
Cabot originally announced the deal in June.
Under the terms of the agreement, Cabot paid $80m (€59.1m) to Grupo Kuo SAB de CV upon closing and will make a special dividend payment to Nhumo shareholders, including $14m (€10.3m) that will revert back to Cabot.
Cabot describes Nhumo as the leading carbon black producer in Mexico. The business will be integrated into Cabot's Reinforcement Materials Segment.
Cabot had owned approximately 40 percent of the Nhumo venture since 1990.
"Mexican tire and auto production is expected to grow approximately five percent or more over the next several years and will create long-term growth in the demand for rubber blacks in the region," said Dave Miller, president, Reinforcement Materials Segment.
"The acquisition of NHUMO allows us to build on our industry position, while continuing to deliver high-quality, reliable products to meet the demands of customers throughout the US and Mexico."
Cabot did not say what impact the deal will have on its annual sales and/or earnings.
Nhumo generated annual sales of $188m (€139m) and EBITDA (earnings before interest, taxes, depreciation, and amortisation) of $24m (€17.7m) for the year ended 31 March, Grupo Kuo said earlier.