Calgon Carbon To Acquire Japanese Joint Venture
Calgon Carbon Corporation signed a definitive agreement to acquire the shares of Calgon Mitsubishi Chemical Corporation, which it does not currently own, according to a Feb. 12 pess release.
The corporation is a joint venture between Calgon Carbon and Mitsubishi Chemical Corporation. In 2008, the corporation recorded sales of approximately US$67 million.
Under the terms of the definitive agreement, Calgon Carbon will increase its current 49 percent ownership interest to 80 percent at the closing, which is expected to occur on March 31. At closing, the company will be renamed Calgon Carbon Japan. Calgon Carbon will acquire the remaining 20 percent on or about March 31, 2011.
The total purchase price of the shares, subject to adjustment for changes in net asset value, is approximately $10.6 million. Calgon Carbon will assume Mitsubishi
s share of the corporation’s debt, which is estimated to be $7.9 million.
The corporation provides a full-range of outsourced activated carbon products to the Japanese market, including coal-based, granular activated carbon produced at Calgon Carbon’s manufacturing facilities in the United States and China. Although by country Japan ranks second worldwide in the consumption of activated carbon, no coal-based activated carbon is currently manufactured there.
Leroy M. Ball, Calgon Carbon’s chief financial officer, said, “We are very excited about the opportunity to obtain sole ownership of a profitable business in a major geographical market with which we have had first-hand operating experience. And equally important, we expect to retain the majority of the workforce and leverage their experience to complement our existing Asian organization.”