Cabot to buy rest of Mexican carbon black JV for $105m
ERJ staff report (BC)
Altamira, Mexico – Cabot Corp. (CBT) has agreed to buy the remaining 60 percent stake in its Mexican carbon black manufacturing joint venture from Grupo Kuo S.A.B. de C.V. for $105m (€78), reports Saabira Chaudhuri of the Wall Street Journal. The move is expected to bolster the speciality chemicals company's carbon black business in North America as well as globally.
Chief Executive Patrick Prevost is reported to have said: "This acquisition not only increases Cabot's footprint in North America, but solidifies our global leadership position in the carbon black industry.
"This gives us expanded access to an important growth market in Mexico and immediate additional capacity to support the expansion of our customers in the U.S."
Cabot, the world's biggest producer and marketer of carbon black, said $80m (€60m) of the total purchase price will be paid upon closing, excluding cash acquired. The company has 18 plants globally and capacity in excess of two million tonnes.
Cabot has owned about 40 percent of the NHUMO SA joint venture since 1990. The Altamira plant has an annual capacity of 140 000 tonnes.
The acquisition is expected to close by the autumn of 2013.
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Full story from Wall Street Journal