Japanese firm Kuraray Co is to acquire the world’s largest activated carbon manufacturer Calgon Carbon Corporation for US$1.1 billion.
The move is pending customary conditions including the approval of US company Calgon Carbon’s shareholders and the receipt of necessary regulatory approvals, and is expected to be sealed by the end of December 2017.
Through the merger process, Kuraray will acquire all of the outstanding shares of Calgon Carbon for cash and Calgon Carbon will be delisted from NYSE and become a wholly-owned subsidiary of Kuraray.
“The Kuraray Group has been considering innovations to build a growth strategy for the future to expand business domains under the medium-term business plan “GS-STEP,” the Japanese firm said.
“Concurrently, the Kuraray Group has identified three key strategic areas for business expansion, namely, “aqua and environment”, “energy”, and “optics and electronics”, all of which have significant potential for market growth,” it added.
Kuraray is engaged in the carbon materials business with a focus on high performance activated carbon used in a wide range of applications in such fields as energy, water resource and air purification.
Meanwhile, Calgon Carbon is a global leader in the activated carbon business with manufacturing facilities in 7 countries and distribution channels in 16 countries, providing innovative solutions in various applications and end markets.
Following the acquisition, Kuraray said it will implement strategic initiatives, including business expansion by leveraging Calgon Carbon’s strong global platform, acceleration of technological innovations by combining R&D expertise, and cost reductions by optimising manufacturing facilities, through which it aims to grow its carbon materials business as one of its future core businesses.