Cabot Corporation (NYSE: CBT) announced that it has completed its acquisition of the equity stake owned by Grupo Kuo S.A.B. de C.V. (KUOB.MX) in its Mexican carbon black manufacturing joint venture, NHUMO, S.A.de C.V.
Cabot Corporation completes acquisition of Mexican joint venture, NHUMO, to meet growing demand in North America. (Photo: Business Wire)
NHUMO is the leading carbon black producer in Mexico, and the acquisition of Kuo’s NHUMO interest strengthens Cabot’s global carbon black business. The NHUMO business will be integrated into the company’s Reinforcement Materials Segment. Under the terms of the agreement, Cabot will pay $105 million, of which $80 million was paid upon closing. In addition, at closing, a special dividend payment will be paid to NHUMO shareholders, of which Cabot will receive $14 million. This strategic business in Mexico will also serve to meet the growing demand for carbon black throughout North America. “The acquisition of NHUMO is a major step forward in our strategy to enhance Cabot’s global presence in the carbon black industry, one of our key growth platforms,” said Patrick Prevost, president and CEO, Cabot Corporation. “From a market perspective, NHUMO has significant opportunities in the growing Mexican market and enables us to create an even stronger presence in North America to further accelerate growth. This transaction is another great example of our acquisition strategy to strengthen our position in growing markets, expand our customer offerings and create value for our shareholders.” Since 1990, Cabot has owned approximately 40 percent of the NHUMO joint venture. The NHUMO facility in Altamira, Mexico is Cabot’s nineteenth carbon black plant globally, and adds an annual carbon black manufacturing capacity of 140,000 metric tons. Cabot is one of the world’s leading producers of carbon black and its global annual capacity now exceeds two million tons.