News from Notch Consulting, Inc.

January 24, 2012

Cabot completes sale of Supermetals business

Filed under: Carbon Black — Notch @ 12:12 pm

On January 23, 2012, Cabot Corporation announced it had closed on the sale of its Supermetals Business to Global Advanced Metals.

“We are pleased to announce that we have completed the sale of the Supermetals business to Global Advanced Metals,” said Patrick Prevost, Cabot president and chief executive officer. “This divestiture is an important step in Cabot’s transformation to becoming a leader in specialty chemicals and performance materials. The sale of the tantalum business at this attractive value will improve the stability of our earnings and will allow us to focus on existing and new growth initiatives as we remain committed to achieving our target of adjusted earnings per share of $4.50 in 2014.”

The sale resulted in an initial cash payment of $175 million. Additional cash consideration will total a minimum of $275 million, consisting of the remaining $215 million purchase price, a minimum of $11 million of payments based on the future performance of the business and approximately $50 million for the sale of excess inventory, to be paid within a two-year period. The transaction is estimated to result in a pre-tax gain of approximately $330 million, approximately $300 million of which is expected to be recorded during the second quarter of fiscal 2012 with the remainder recorded over the next two years. The Company expects to receive after-tax proceeds of approximately $430 million over the two year period. The assets involved in the transaction include facilities in Boyertown, Pa and Aizuwakamatsu, Japan. Cabot will maintain its mining operation in Manitoba, Canada where the company mines cesium for its Specialty Fluids Business and tantalum.

Advertisements

Leave a Comment »

No comments yet.

RSS feed for comments on this post. TrackBack URI

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Create a free website or blog at WordPress.com.

%d bloggers like this: