Cabot Corporation (Boston, Mass.; www.cabotcorp.com) announced that the company has successfully closed the previously announced transaction to divest its specialty fluids business to Sinomine (Hong Kong) Rare Metals Resources Co. Limited, a wholly owned subsidiary of Sinomine Resource Group Co., Ltd., a joint stock public company based in China, principally engaged in the provision of geological exploration, mining investment and base metal chemical manufacturing.
At closing, Cabot received $135 million with additional cash considerations that could include royalties of up to $5 million for lithium products, payable over a ten-year period. There is not expected to be any material cash tax impact to the proceeds.
In fiscal 2018, earnings before interest, tax, depreciation and amortization (EBITDA) reported for the specialty fluids segment was $10 million.