Cabot sell Supermetals business GAM $400 million

Cabot to sell Supermetals business to GAM for $400 million

11:03 PM, 25th August 2011
Cabot to sell Supermetals business to GAM for $400 million

 

BOSTON, US: Cabot Corporation will sell its Supermetals business to Global Advanced Metals (GAM) for a minimum of $400 million in total cash consideration. The transaction is subject to regulatory approval and is expected to close by the end of 2011.  

“While we repositioned the Supermetals business to be a solid contributor to Cabot over the past two years, we believe that the specialty metals nature of this business does not fit the long-term direction for Cabot. GAMs integrated business model will enable them to better manage the historical cyclicality of this business,” said Patrick Prevost, President and CEO, Cabot.

“This transaction allows us to focus our resources on growth initiatives in our other businesses as we remain focused on achieving our target of adjusted earnings per share of $4.50 in 2014. In addition, cash proceeds generated from the sale will allow us to pursue potential acquisitions,” he added.

The transaction includes an initial cash payment of $175 million. Additional cash consideration, including contingent payments based on the future performance of the acquired business, will total a minimum of $225 million and be paid within a two-year period.  

“The strong position and leading technologies of Cabot makes Supermetals business an excellent fit with our long-term strategy. We believe that this forward integration will create a tantalum focused enterprise with strong future potential,” said Bryan Ellis, CEO, GAM.

© WOC News

 

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