|
PRESS
RELEASE
31 January 2011
Birla
Carbon announces agreement to acquire Columbian Chemicals
The
Aditya Birla Group today announced that it has entered into
a definitive agreement to acquire the Atlanta-based Columbian
Chemicals Company, from One Equity Partners, the merchant banking
arm of J. P. Morgan Chase & Co.
The Aditya
Birla Group has bought One Equity Partners’ equity in
Columbian Chemicals through its associates, Alexandria Carbon
Black Company and Thai Carbon Black Company Limited along
with SKI Investment, an Aditya Birla Group Company.
Briefing
the media on this significant development, Mr. Kumar Mangalam
Birla, Chairman, Aditya Birla Group, said, “The acquisition
of Columbian Chemicals catapults Birla Carbon to become a
leading player globally in this sector, by raising its annual
production to 2 million tons. We look upon the carbon black
business as a core business that has a strong growth potential
both in terms of revenues and earnings. This acquisition is
in keeping with our objective of being a leader in every business
that the Group operates in. The Aditya Birla Group’s
Carbon Black business and that of Columbian Chemicals complement
each other. This acquisition will create a business which
will have the advantage of cutting edge technology and low
costs, and will have a truly global footprint.”
“Our
vision has been to be a premium carbon black player, global
in size and reach. The acquisition of Columbian Chemicals,
which takes us closer to our vision, is a perfect fit for
Birla Carbon. Their assets and the expertise of the team will
provide a stronger platform for higher growth and ongoing
success” averred Mr. Birla.
Dr. Santrupt
Misra, CEO, Birla Carbon and Director, HR, of the Aditya Birla
Group, added – “We look forward to leveraging the
strengths of both Columbian Chemicals and Birla Carbon. Their
world-class service coupled with that of Birla Carbon, positions
us well. Additionally, Columbian Chemicals accords us access
to markets that we currently do not serve, thus enhancing
our geographic reach. Columbian Chemicals also has a very
strong Research & Development team of scientists engaged
in process, technology and innovative products development.
Columbian Chemicals has a rich legacy, a committed workforce
and values that are in sync with our Group values”.
The Aditya
Birla Group is one of the most cost-efficient manufacturers
of Carbon Black. Its operations span four countries, with
six manufacturing plants. It caters to the requirements of
leading tyre manufacturers globally. Columbian Chemicals operates
11 plants in 9 countries.
The acquisition
is subject to customary approvals. The deal is expected to
attain closure in the second half of CY-11.
ANZ, BankAM,
HSBC, RBS and StandChart are participating in the financing
of the transaction and were also the financial advisors for
this deal.
KPMG were
our tax and accounting advisors, and Shearman & Sterling
LLP, the legal counsel.
|
