Cabot Sells Purification Solutions to Private Equity
US specialty chemicals and performance materials manufacturer Cabot Corp. has agreed to sell its purification solutions business, Norit Activated Carbon, to One Equity Partners for $111 million. The deal is expected to close by the end of quarter one 2022, subject to the usual conditions.
“Cabot’s purification solutions business is a premier activated carbon company with unique service offerings and strong manufacturing and technology capabilities. We believe the business is well-positioned to begin executing on a number of strategic growth initiatives,” said Joe Huffsmith, managing director at One Equity Partners
The business, which posted revenues of $257 million in fiscal 2021, operates two plants in North America, five facilities in Europe and participates in three joint ventures in Canada, Asia and Mexico. Its activated carbon products are used for purification needs in sectors such as renewable natural gas, food and beverage, chemicals, pharmaceuticals, air quality, water and automotive.
One Equity Partners said the global activated carbon market is expected to grow at a compound annual average rate of about 9%, partly due to increased regulatory standards around air purification, water treatment, renewable natural gas purification and pharmaceutical drug production.
Cabot’s president and CEO, Sean Keohane, added that the divestment will allow it to focus resources on core business segments and invest in areas where it sees strong future growth and innovation potential, such as battery materials.
Author: Elaine Burridge, Freelance Journalist
