Cabot Corporation to divest its Specialty Fluids Segment for $135 Million, Sale provides attractive value for shareholders, by chemwinfo

30 January 2019

ABOUT CABOT

DETAILS

Cabot Corporation (NYSE: CBT) has entered into

a definitive agreement to sell

its Specialty Fluids business

to Sinomine (Hong Kong) Rare Metals Resources Co. Limited,

a wholly owned subsidiary of 

Sinomine Resource Group Co., Ltd.,

in a transaction valued at $135 million.

The purchase price consists of $130 million 

to be paid at closing, subject to

customary closing adjustments,

and additional cash royalties of up to $5 million 

for lithium products, payable over a ten-year period.

The transaction is expected to close

in the third quarter of fiscal 2019

and is subject to customary closing conditions, including

regulatory approvals.

Earnings before interest, tax,

depreciation and amortization (EBITDA) 

reported for the Specialty Fluids segment

in fiscal year 2018 was $10 million.

Sinomine is a joint stock public company

based in China, principally engaged in

the provision of geological exploration,

mining investment

and base metal chemical manufacturing.

Cabot Corporation was advised by 

Grace Matthews and Jones Day.

Sean Keohane,

Cabot president and chief executive officer 

“We are pleased to have reached a deal

 with the right strategic buyer

 to help the Cabot Specialty Fluids segment

 reach its fullest potential,”

“As we continue to execute our

 ‘Advancing the Core’ strategy,

 this transaction allows us

 to maximize the value of the business

 for our shareholders and

 focus our resources on advantaged growth initiatives

 in our core businesses.

 We view the Specialty Fluids segment

 as having the best growth potential

 under the ownership of a strategic partner

 focused on both mineral mining

 and downstream chemical manufacture.

 The Specialty Fluids segment will benefit from

 being part of a leading mineral industry player

 that will invest in its long-term growth.”

“As a company, we have been very disciplined

 in making the right strategic acquisitions

 to enable us to implement

 the mineral resources supply on a global scale.

 We specifically seek out opportunities

 that are based on mutual cooperation,

 benefit and respect,” 

Pingwei Wang,

Chief Executive Officer and Executive Director, 

Sinomine Resource Group

“We admire Cabot’s commitment to

 safety, sustainability and innovation,

 and the accomplishments they have had

 in the Specialty Fluids business.

 We are pleased to be working with

 the Cabot Corporation team throughout this process

 and look forward to the opportunity

 to leverage our broad mining expertise

 to invest in this high potential investment.”

READ MORE

Source: Cabot Corporation

Steve Delahunt
Vice President, Treasurer & Investor Relations
(617) 342-6255

Vanessa Craigie
Director, Corporate Communications
(617) 342-6015

WWW.CHEMWINFO.COM  BY KHUN PHICHAI