Cabot to Buy Remaining Stake of Mexican Carbon Black JV for $105 Million

The Wall Street Journal 17 June 2013
Cabot Corp. has agreed to buy the remaining 60% stake in its Mexican carbon black manufacturing joint venture from Grupo Kuo S.A.B. de C.V. for $105 million, a move that will bolster the specialty chemicals company’s carbon black business in North America as well as globally.
“This acquisition not only increases Cabot’s footprint in North America, but solidifies our global leadership position in the carbon black industry,” Chief Executive Patrick Prevost said. “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 $80 million 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 tons.
Cabot has owned about 40% of the NHUMO SA joint venture since 1990. The plant has an annual capacity of 140,000 metric tons and is located in Altamira, Mexico. In fiscal 2012, the joint venture generated adjusted earnings before interest, taxes, depreciation and amortization of $41 million.
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