Calgon Carbon Corporation (Pittsburgh, Pa.; www.calgoncarbon.com) announced today that it has made a binding offer to acquire the wood-based activated carbon, reactivation and mineral-based filtration media business of CECA. The transaction is valued at €145.5 million ($160.1 million) which includes a cash purchase price of €137.7 million ($151.5 million), and the assumption of unfunded pension liabilities. The completion of this transaction is subject to various customary conditions and regulatory clearances, including prior consultations with certain of Arkema’s works council.
The transaction, which is anticipated to close in the fourth quarter of 2016, is expected to be accretive to Calgon Carbon’s fully diluted earnings per share in 2017, excluding purchase accounting adjustments. Calgon Carbon expects to finance the transaction through a combination of cash and debt.
Calgon Carbon intends to continue executing on several value-enhancing projects that are already in progress, including de-bottlenecking the wood-based activated carbon manufacturing facility and other operational improvement initiatives. When combined with expected synergies, these actions are expected to improve EBITDA by 40% or more by 2019.
Calgon Carbon is the world’s largest producer of granular activated carbon and supplies more than 100 types of activated carbon products – in granular, powdered, pelletized and cloth form – for more than 700 distinct applications.