The estimated earnings per share accretion are expected to be in the range of $0.20 to $0.25 in fiscal year 2013 and $0.30 to $0.40 in fiscal year 2014, excluding one-time costs. Norit’s growth will significantly benefit from Cabot’s process engineering capability, broad geographic footprint, especially in emerging markets, and extensive material science expertise. Additionally, the transaction is expected to yield approximately $50 million of cash tax synergies related to net operating losses.Cabot expects the acquisition to be financed with a combination of approximately $200 million of cash and $300 million of borrowings under its existing revolver. In addition, the company plans to issue approximately $600 million of long-term debt prior to closing. The transaction is expected to close within calendar year 2012 and is conditional upon Dutch works council consultation and advice and approval of the competition authorities in the U.S. and Germany. J.P. Morgan is Cabot’s financial advisor for the transaction. Wachtell, Lipton, Rosen & Katz is Cabot’s legal advisor for the transaction, with De Brauw Blackstone Westbroek and Slaughter & May serving as Dutch and English counsel, respectively. Conference Call Cabot will host a live conference call today, June 21, 2012, at 8:30 a.m. Eastern Daylight Time to discuss the Norit transaction. Interested parties may listen to the conference call by dialing (888) 680-0894 and using access code 83298609. A webcast of the call can be accessed through Cabot’s investor relations website at http://investor.cabot-corp.com. A presentation will be made available at the time of the call and can be accessed through Cabot’s investor relations website. About Cabot Cabot Corporation, headquartered in Boston, Massachusetts, is a global specialty chemicals and performance materials company. Cabot’s major products are carbon black, fumed silica, cesium formate drilling fluids, inkjet colorants and aerogels. The Company’s website address is: http://www.cabot-corp.com About Norit Norit is the leading provider of activated carbon and related services. With over 90 years of experience, Norit has grown to produce well over 150 different types of activated carbon products, enabling Norit to offer the most choices, precise fit and best performance for any application. Norit also offers activated carbon reactivation, carbon change out services, and both granular and powdered carbon systems and equipment.
Forward-Looking StatementsSafe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release involving the Company that are not statements of historical fact are forward-looking statements and are subject to risks and uncertainties inherent in projecting future conditions, events and results. Such forward looking statements include statements regarding Cabot’s expectations pertaining to the timing of completion of the acquisition, the expected benefits of the acquisition and Cabot’s future financial performance, including expectations for growth. Such expectations are based upon certain preliminary information, internal estimates and management assumptions, expectations and plans. For a discussion of the risks and uncertainties that could cause results to differ from those expressed in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K. Use of Non-GAAP Financial Measure The preceding discussion includes a discussion of our future expectations for adjusted EPS, which is a non-GAAP financial measures. In calculating adjusted EPS, we exclude from our net income per share from continuing operations certain items of expense and income that management does not consider representative of the Company's ongoing operations. Adjusted EPS should be considered as supplemental to, and not as a replacement for, EPS determined in accordance with GAAP.