Cabot to acquire Norit N.V. in $1.1B chemicals merger
Boston Business Journal by Patricia Resende, MHT Date: Friday, June 22, 2012, 10:20am EDT
Boston specialty metals company Cabot Corp. said Thursday it has agreed to pay $1.1 billion to acquire Netherlands-based Norit N.V, a nearly century-old maker of activated carbon.
The acquisition will enable Cabot, a maker of carbon black, fumed silica, cesium formate drilling fluids, inkjet colorants and aerogels, to expand in the activated carbon market. Activated carbon materials are used in various applications, including environmental protection, air and water purification, food and beverages, pharmaceuticals and catalysts.
“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,” said Cabot President and CEO Patrick Prevost in a written statement. “The acquisition of Norit is a natural extension of our core R&D and applications development competencies.”
Cabot plans to pay approximately $200 million in cash and $300 million of borrowings to finance the acquisition. It also plans to issue approximately $600 million of long-term debt prior to closing, which is expected by the end of the calendar year 2012.
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