Cabot acquires Norit $1.1 billion
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Cabot acquires Norit for $1.1 billion

6:13 AM, 22nd June 2012
Cabot acquires Norit for $1.1 billion
Patrick Prevost, President and CEO, Cabot.

BOSTON, US: Cabot Corporation entered into an agreement to purchase Norit, the global leader in activated carbon, from affiliates of Doughty Hanson & Co Managers Ltd and Euroland Investments for $1.1 billion. The acquisition strengthens Cabot’s specialty chemicals portfolio with a non-cyclical, high growth and high margin business.

The estimated earnings per share accretion are expected to be in the range of $0.20 to $0.25 in fiscal year 2013 and $0.30 to $0.40 in fiscal year 2014, excluding one-time costs. Cabot expects the acquisition to be financed with a combination of approximately $200 million of cash and $300 million of borrowings under its existing revolver. In addition, the company plans to issue approximately $600 million of long-term debt prior to closing. The transaction is expected to close within 2012. J P Morgan is Cabot’s financial advisor for the transaction.

“Norit’s leading market position, unique technology and strong financial performance is an excellent fit with Cabot’s portfolio. This acquisition supports the ongoing transformation of our portfolio to a higher margin, less cyclical, specialty chemicals focused company. The acquisition of Norit is a natural extension of our core R&D and applications development competencies. Norit is the leader in purification and we are looking forward to the Norit team joining Cabot,” said Patrick Prevost, President and CEO, Cabot.

© WOC News

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