Cabot completes Nhumo acquisition
Cabot Corporation has completed its acquisition of the equity stake owned by Grupo Kuo S.A.B. de C.V. in its Mexican carbon black manufacturing joint-venture, Nhumo, S.A.de C.V. The company says Nhumo is Mexico’s leading carbon black producer and the acquisition of Kuo’s interest strengthens Cabot’s global carbon black business and will help meet growing demand throughout North America. The Nhumo business will now be integrated into Cabot’s Reinforcement Materials segment. Under the terms of the agreement, Cabot will pay Kuo US$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.
“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, Cabot Corporation president and CEO. “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.”
Cabot has owned approximately 40 per cent of the Nhuno joint-venture since 1990. The operation’s facility in Altamira, Mexico is Cabot’s nineteenth carbon black plant globally, and adds 140,000 tonnes to the company’s annual carbon black manufacturing capacity. Cabot’s global annual capacity now exceeds two million tons.
“Mexican tyre and auto production is expected to grow approximately five per cent or more over the next several years and will create long-term growth in the demand for rubber blacks in the region,” said Dave Miller, president of Cabot’s Reinforcement Materials Segment. “The acquisition of Nhumo allows us to build on our industry position, while continuing to deliver high-quality, reliable products to meet the demands of customers throughout the US and Mexico.”