Proactiveinvestors United Kingdom Cabot https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Cabot RSS feed en Mon, 17 Jun 2019 09:39:24 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Cabot to buy Netherlands-based Norit for $1.1-bln ]]> https://www.proactiveinvestors.co.uk/companies/news/87236/cabot-to-buy-netherlands-based-norit-for-11-bln-30833.html Global specialty chemicals company Cabot Corp (NYSE:CBT) said Thursday it has struck a deal with Doughty Hanson & Co. and Euroland Investments B.V. to purchase activated carbon product maker Norit, for $1.1 billion, in an effort to focus on higher margin and less cyclical business.

"Norit’s leading market position, unique technology and strong financial performance is an excellent fit with Cabot’s portfolio," said Cabot’s president and CEO, Patrick Prevost.

"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."

Activated carbon is a highly porous chemical used to absorb impurities from the air, water, and other liquids and gases, as well as from food and beverages and pharmaceuticals.

Netherlands-based Norit currently operates 10 manufacturing facilities throughout the Americas and Europe. For the twelve months that ended December 31, 2011, the company generated sales of $360 million, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $92 million.

The business has grown 12 per cent annually since 2007.

"Norit’s differentiated products for high-end applications drive substantially higher margins relative to competition," said Cabot’s CFO, Eduardo Cordeiro.

"Norit’s fundamental business performance generates EBITDA margins in excess of 25 percent and we expect annual revenue growth in the range of 10 percent to 12 percent."

"We remain confident in our adjusted EPS target of $4.50 in 2014 from our base business, and the Norit acquisition will be incremental to that target."

Massachusetts-based Cabot said that it anticipates earnings per share accretion to be in the range of 20 to 25 cents in fiscal 2013, and 30 to 40 cents per share in 2014, excluding one-time costs.

The transaction is expected to yield roughly $50 million of cash tax synergies related to net operating losses, the parties said.

Cabot wants to finance the acquisition with a combination of roughly $200 million of cash and $300 million of borrowings under its existing revolver.

The deal is expected to close within fiscal 2012. Cabot plans to issue around $600 million of long-term debt prior to the transaction's close.

Cabot has operations in the United States and around 20 other countries. Its major products are carbon black, inkjet colorants, aerogel and cesium formate drilling fluids.

Norit produces over 150 different types of activated carbon products. The company also offers activated carbon reactivation, carbon change out services, and both granular and powdered carbon systems and equipment.

Cabot shares closed Wednesday at $37.97.

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Thu, 21 Jun 2012 09:19:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/87236/cabot-to-buy-netherlands-based-norit-for-11-bln-30833.html
<![CDATA[News - Cabot to expand carbon black manufacturing capacity, to increase global output by 15% ]]> https://www.proactiveinvestors.co.uk/companies/news/76692/cabot-to-expand-carbon-black-manufacturing-capacity-to-increase-global-output-by-15-12984.html Cabot Corp. (NYSE: CBT) said Wednesday that it plans to invest more than US$180 million between now and 2013 to expand its manufacturing capacity for carbon black, a material used as a reinforcement in rubber and other specialty products.

The plans follow the Boston-based company's announcement yesterday that it signed a joint venture with Risun Coal Chemicals Group to construct a carbon black manufacturing facility in Xingtai City, China, expected to increase its capacity in the region by 25%.

Cabot is also expanding capacity at plants in Indonesia, Brazil and Argentina by the end of 2013, as well as adding capacity at three facilities in Europe. The additions will increase Cabot's yearly global carbon black output by about 15%, or more than 300,000 metric tons.

"We are making investments in support of Cabot's long-term strategy to grow in emerging markets," said president and CEO Patrick Prevost.

"We already have a strong presence in many of the fastest growing regions in the world. These investments will further accelerate our growth."

Specifically, in Brazil and Argentina, Cabot will boost capacity by roughly 20%, while adding about 50% in Indonesia.
In Europe, Cabot is also preparing de-bottlenecking actions, which will extend the company's capacity by 10%.

Global demand for carbon black is increasing, especially for tires as mobility and transportation of goods grows.

Cabot's major products are carbon black, inkjet colorants, aerogel and capacitor materials, among others.

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Wed, 16 Mar 2011 10:48:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/76692/cabot-to-expand-carbon-black-manufacturing-capacity-to-increase-global-output-by-15-12984.html
<![CDATA[News - Cabot forms joint venture to build carbon black facility in China ]]> https://www.proactiveinvestors.co.uk/companies/news/76671/cabot-forms-joint-venture-to-build-carbon-black-facility-in-china-12958.html Cabot Corp (NYSE:CBT) has signed a joint venture with Risun Coal Chemicals Group to construct a carbon black manufacturing facility in Xingtai City, China.

The joint venture, in which Boston-based Cabot will hold a 60% interest, will invest $100 million into the new facility, which will produce the black material used as a reinforcement in rubber and other specialty products.

"This investment builds on our strong position in China, where demand for carbon black continues to grow. Our investment will further build our presence in the region," said Cabot president and CEO Patrick Prevost.

Once commissioned in early 2013, the Xingtai facility will produce approximately 130,000 metric tons of carbon black annually, with the potential for expansion to 300,000 metric tons.

The joint venture between the two companies is supported by the Xingtai and China governments.

Cabot's major products are carbon black, inkjet colorants, aerogel and capacitor materials, among others.

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Tue, 15 Mar 2011 11:52:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/76671/cabot-forms-joint-venture-to-build-carbon-black-facility-in-china-12958.html