Cabot acquires stake in Mexican carbon-black JV

Cabot Corp. (Boston, Mass.; www.cabot-corp.com) announced that it 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 (JV), NHUMO, S.A.de C.V. 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 $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. This strategic business in Mexico will also serve to meet the growing demand for carbon black throughout North America. Since 1990, Cabot has owned approximately 40% of the NHUMO joint venture. The NHUMO facility in Altamira, Mexico is Cabot’s nineteenth carbon black plant globally, and adds carbon-black manufacturing capacity of 140,000 metric tons per year (m.t.yr). Cabot’s global capacity of carbon black now exceeds two million m.t./yr.