Cabot Buying Norit For $1.1B
BOSTON (AP) — Chemical and specialty products maker Cabot Corp. is buying Norit NV for $1.1 billion in order to strengthen its specialty chemicals portfolio.
Norit, which is based in the Netherlands, specializes in activated carbon products, which are used in environmental protection, air and water purification, food and beverages, pharmaceuticals and catalysts. It has 10 manufacturing plants located throughout Europe and the Americas and 760 employees.
Boston-based Cabot is buying Norit from affiliates of Doughty Hanson & Co. Managers Ltd. and Euroland Investments BV.
"This acquisition supports the ongoing transformation of our portfolio to a higher margin, less cyclical, specialty chemicals focused company," Cabot President and CEO Patrick Prevost said in a statement.
Norit will continue to be led by CEO Ronald Thompson.
The acquisition is expected to add 20 cents to 25 cents per share to fiscal 2013 earnings and 30 cents to 40 cents per share in fiscal 2014. The estimates exclude one-time costs.
The deal is expected to close this year. It requires the approval of U.S. and German regulators and consultation with the Dutch labor council.
Cabot said Thursday that it expects to fund the deal with about $200 million in cash and $300 million of borrowings under a credit agreement. It also plans to issue about $600 million of long-term debt.
Cabot shares closed at $37.97 on Wednesday. They have traded in a 52-week range of $22.45 to $44.97.