Cabot today announced an agreement to purchase Norit N.V., the global leader in activated carbon, from affiliates of Doughty Hanson & Co. Managers Limited and Euroland Investments B.V. for $1.1 billion. According to Cabot’s press release, the acquisition strengthens Cabot’s specialty chemicals portfolio with a non-cyclical, high growth and high margin business.
Activated carbons are performance materials used in multiple high-end applications including environmental protection, air and water purification, food and beverages, pharmaceuticals and catalysts. Norit operates 10 manufacturing facilities throughout the Americas and Europe. It employs 760 people and provides the widest and most differentiated range of activated carbon products of any producer. Norit generated sales of $360 million and adjusted EBITDA of $92 million for the trailing twelve months ended December 31, 2011. The business has grown 12 percent annually since 2007. Norit’s current chief executive officer, Ronald Thompson, will continue to lead the business.
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.
Cabot held a conference call to discuss the acquisition this morning. The presentation that accompanied the call is available here.
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