Cabot completes acquisition of Shenzhen Sanshun Nano New Materials
Cabot Corporation has completed its previously announced acquisition of Shenzhen Sanshun Nano New Materials Co., Ltd (SUSN) for approximately US$115 million. The business will be integrated into Cabot’s Performance Chemicals Segment.
SUSN is a leading carbon nanotube (CNT) producer in China. The acquisition significantly strengthens Cabot’s market position and formulation capabilities in the high-growth batteries market, particularly in China, which is the largest and fastest growing electric vehicle market in the world. With this acquisition, Cabot becomes the only carbon additive supplier with commercially proven carbon black, CNT, carbon nanostructure and dispersion capabilities.
SUSN’s 2019 revenue was $28 million and the combination of Cabot’s energy materials portfolio and SUSN will create a business with approximately $50 million in revenue. Revenue is expected to grow at a rate of 20-25 per cent over the next five years from continued growth in electric vehicles and other lithium-ion battery storage applications, making this a meaningful part of Cabot’s portfolio of specialty chemicals businesses.
“We are pleased to complete this acquisition and officially welcome our new colleagues from SUSN to Cabot. We look forward to collaborating with them to strengthen our global leadership position in carbon additives,” said Jeff Zhu, senior vice president and president, Performance Additives business. “The addition of SUSN’s CNT technology complements our already strong portfolio of conductive carbon products, and creates significant opportunity to deliver new innovative formulated solutions for improved battery performance for the rapidly growing energy-storage market.”