This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cabot Corporation To Acquire Mexican Carbon Black Producer NHUMO

Cabot Corporation (NYSE: CBT) announced that it has entered into an agreement with Grupo Kuo S.A.B. de C.V. (KUOB.MX) to purchase the remaining 60 percent equity of its Mexican carbon black manufacturing joint venture, NHUMO, S.A.de C.V, for $105 million, of which $80 million will be paid upon closing, excluding cash acquired. NHUMO is the leading carbon black producer in Mexico, and the acquisition will strengthen Cabot’s global carbon black business. This strategic asset in Mexico will also serve to meet the growing demand for carbon black throughout North America.

“This acquisition not only increases Cabot’s footprint in North America, but solidifies our global leadership position in the carbon black industry,” said Cabot President and Chief Executive Officer, Patrick Prevost. “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. Furthermore, it clearly demonstrates our ongoing commitment to delivering high quality products and services from local supply sources.”

With 18 plants globally, and capacity in excess of two million tons, Cabot is the world’s leading producer and marketer of carbon black. Cabot has owned approximately 40 percent of the 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 EBITDA of $41 million. The acquisition is expected to close by the fall of 2013, pending regulatory approvals.

“We are excited to bring this plant, and the NHUMO team, fully into the Cabot network,” said President of the Reinforcement Materials segment, Dave Miller. “Auto and tire manufacturers have been increasing capacity in the U.S. and Mexico which is driving demand for our high performance rubber black products. Through this acquisition, we will be well positioned to support the growing demands of our North American customers.”

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs