Cabot Corporation Completes Acquisition of NHUMO to Meet Growing Demand in North America
Mexican Carbon Black Business Adds 140,000 Tons of Capacity Extending Cabot’s Leadership in Carbon Black
NHUMO is the leading carbon black producer in Mexico, and the
acquisition of Kuo’s NHUMO interest strengthens Cabot’s global carbon
black business. The NHUMO business will be integrated into the company’s
Reinforcement Materials Segment. Under the terms of the agreement, Cabot
will pay
“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
Since 1990, Cabot has owned approximately 40 percent of the NHUMO joint
venture. The NHUMO facility in
“Mexican tire and auto production is expected to grow approximately 5 percent 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, 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 U.S. and Mexico.”
About
Forward-Looking Statements
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release involving the Company that are not statements of historical fact are forward-looking statements and are subject to risks and uncertainties inherent in projecting future conditions, events and results. Such forward looking statements include statements regarding Cabot’s expectations pertaining to the timing of completion of the acquisition, the expected benefits of the acquisition and Cabot’s future financial performance, including expectations for growth. Such expectations are based upon certain preliminary information, internal estimates and management assumptions, expectations and plans. For a discussion of the risks and uncertainties that could cause results to differ from those expressed in the forward-looking statements, see "Risk Factors" in the Company's Annual Report on Form 10-K.
Use of Non-GAAP Financial Measures
The preceding discussion includes a discussion of our future expectations for adjusted earnings per share (EPS), which is a non-GAAP financial measure. In calculating adjusted EPS, we exclude certain items of expense and income that management does not consider representative of the Company's ongoing operations, which will include advisor fees associated with the acquisition and purchase accounting adjustments. Adjusted EPS should be considered as supplemental to, and not as a replacement for, EPS determined in accordance with GAAP.
Adjusted EBITDA for the joint venture is a non-GAAP financial measure and refers to earnings before interest, taxes, depreciation and amortization, excluding items that management does not consider representative of the fundamental operating results.
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Source:
Cabot Corporation
Vanessa Craigie, 617-342-6015
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Erica McLaughlin, 617-342-6090
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