BOSTON--(BUSINESS WIRE)--Apr. 1, 2020--
Cabot Corporation announced that it has completed its previously announced acquisition of Shenzhen Sanshun Nano New Materials Co., Ltd (SUSN) for approximately $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.
“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.”
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% 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.
ABOUT CABOT CORPORATION
Cabot Corporation (NYSE: CBT) is a global specialty chemicals and performance materials company, headquartered in Boston, Massachusetts. The company is a leading provider of rubber and specialty carbons, activated carbon, inkjet colorants, masterbatches and conductive compounds, fumed silica and aerogel. For more information on Cabot, please visit the company’s website at cabotcorp.com.
About Shenzhen Sanshun Nano New Materials Co., Ltd (SUSN)
Founded in 2011 and headquartered in Shenzhen, China, SUSN is a leading carbon nanotubes (CNTs) and dispersions producer that supplies lithium-ion battery manufacturers both in China and globally. SUSN has a wide range of products covering single-walled CNTs, multi-walled CNTs and various blends to meet the ever-increasing needs of the battery industry.
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 revenue growth over the next five years in its energy materials portfolio and the expected benefits of the acquisition. 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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20200401005752/en/
Erin Anthony, Corporate Communications
Steve Delahunt, Investor Relations
Source: Cabot Corporation