FORT WORTH, Texas—Japanese carbon black firm Tokai Carbon Co. Ltd. has entered into an agreement with Fort Worth-based Sid Richardson Carbon Ltd. to acquire 100 percent of Sid Richardson's assets, according to Tokai.
The acquisition includes Sid Richardson and two affiliated companies, Tokai said. The proposed purchase price is about $310 million and will be financed through bank loans, it said. Tokai announced the acquisition at a June 26 meeting of its board of directors, according to a Tokai presentation.
Acquiring Sid Richardson is a major step in Tokai's plan to become a global player in carbon black. According to power point presentation, the acquisition will make Tokai the world's fifth-largest carbon black manufacturer, with nine production plants worldwide and annual capacity of 937,000 tons.
"Carbon black is a cornerstone of Tokai Carbon's business, and one that we intend to grow over the mid- to long term," Tokai said in a press release.
Tokai is already one of Asia's largest producers of furnace black, which is made from petroleum and coal tar base oil, the company said. It manufactures furnace black at its facilities in Japan, China and Thailand, it said.
Sid Richardson is the leading manufacturer of furnace black in the U.S., according to Tokai. Sid Richardson has three production plants, at Big Spring and Borger, Texas, and Addis, La., it said.
Sid Richardson counts Bridgestone, Michelin, Goodyear and Continental among its customers, and its state-of-the-art production facilities give the company cutting-edge technology in utilizing lighter feedstock oil, according to Tokai.
"The acquisition of Sid Richardson Carbon will support Tokai Carbon's expansion into the North American market, the second-largest market after China," Tokai said.
Tokai previously moved into the North American market with its 2014 acquisition of Canadian carbon black manufacturer Cancarb, the Japanese company said. That acquisition also brought Tokai into the market for thermal black, which is made primarily from natural gas, it said.
Tokai plans to complete its purchase of Sid Richardson in early September, it said.