Cabot to Buy Dutch Company Norit for $1.1 Billion
Chemicals maker Cabot said it will buy activated carbon manufacturer Norit for $1.1 billion as it moves its focus to higher-margin specialty chemicals.
Cabot will buy Netherlands-based Norit from affiliates of British private equity fund Doughty Hanson & Co Managers and Dutch investment firm Euroland Investments. Norit was acquired by a group of investors led by Doughty Hanson in 2007.
"This acquisition supports the ongoing transformation of our portfolio to a higher margin, less cyclical, specialty chemicals focused company," Cabot Chief Executive Patrick Prevost said.
Reuters reported in April that Norit, which had earlier announced plans for a U.S. initial public offering, was also exploring a sale of itself.
Activated carbon is generally derived from charcoal and used in purification and filtration processes. Norit sold its Clean Process Technologies unit to Pentair for €503 million last year.
Cabot expects the Norit deal to add 20 to 25 cents per share to its earnings, excluding one-time costs, in 2013.
Norit operates 10 plants throughout the Americas and Europe. It had sales of $360 million in 2 011.
J.P. Morgan was Cabot's financial adviser for the deal.
