Cabot to acquire Bridgestone's carbon black plant in Mexico

Cabot Corporation announced this week that it had entered into a definitive agreement to acquire Mexico Carbon Manufacturing S.A. de C.V. (MXCB) from Bridgestone Corporation. The agreement is to acquire MXCB for $70 million on a debt-free, cash-free basis, subject to customary closing adjustments. The transaction is subject to regulatory approval in Mexico and is expected to close in the next three to six months. The carbon black facility was commissioned in 2005 and is located in close proximity to Cabot’s current carbon black facility in Altamira, Mexico, which has operated since 1990. Under the terms of the acquisition, Cabot will strengthen its longstanding partnership with Bridgestone through the long-term supply of reinforcing carbon products from MXCB for Bridgestone. In addition, the facility also has the capability to manufacture other reinforcing carbon products, providing flexibility to support broader customer needs and future growth opportunities.

“We are excited to expand our global reinforcing carbons network and deepen our collaboration with Bridgestone,” Sean Keohane, Cabot's president and CEO, said in a press release announcing the deal. “This acquisition aligns with our strategy to grow in core markets and reinforces our commitment to operational excellence, innovation, and customer value. Our long-standing experience in the region and cultural alignment with the local team supports a smooth integration and long-term success. Importantly, this acquisition also further strengthens our position as a global leader in reinforcing carbons, enabling us to deliver innovative solutions and dependable supply to customers.”

Earlier this month, Bridgestone Corporation agreed to sell its carbon black plant in Thailand to Tokai Carbon, a deal that also included a long-term supply agreement between Tokai and Bridgestone. With these two divestitures, Bridgestone has largely exited the carbon black manufacturing business, with its only remaining capacity being in its home market of Japan (through Asahi Carbon).