BOSTON—Cabot Corp. has completed its acquisition of 100 percent control of its Nhumo S.A. de C.V. carbon black joint venture in Mexico, paying $105 million for 60 percent of the firm that it didn't own.
Cabot President and CEO Patrick Prevost called the acquisition a major step forward in his firm's "strategy to enhance Cabot's global presence in the carbon black industry. …
"From a market perspective, Nhumo has significant opportunities in the growing Mexican market and enables us to create an even stronger presence in North America to further accelerate growth," Prevost said.
Nhumo's plant in Altamira, Mexico, adds 140,000 metric tons of an annual carbon black manufacturing capacity to Cabot's assets, pushing the Boston-based firm's global capacity to more than 2 million tons annually.
Cabot originally announced the deal in June.
Under the terms of the agreement, Cabot paid $80 million to Grupo Kuo S.A.B. de C.V. upon closing and will make a special dividend payment to Nhumo shareholders, including $14 million that will revert back to Cabot.
Cabot describes Nhumo as the leading carbon black producer in Mexico. The business will be integrated into Cabot's Reinforcement Materials Segment.
Cabot had owned approximately 40 percent of the Nhumo venture since 1990.
"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.
Cabot did not say what impact the deal will have on its annual sales and/or earnings.
Nhumo generated annual sales of $188 million and EBITDA of $24 million for the year that ended March 31, Grupo Kuo said earlier.