BOSTON–(BUSINESS WIRE)–Cabot Corporation (NYSE: CBT) announced that it has entered a definitive agreement to acquire Tokai Carbon (Tianjin) Co., Ltd from Tokai Carbon Group for $9 million, subject to customary closing adjustments. The carbon black manufacturing facility was commissioned in 2006 and is located in close proximity to Cabot’s current carbon black and specialty compounds facility in Tianjin, China. The acquisition is expected to support the growth of Cabot’s Battery Materials product line, while continuing to serve existing carbon black customers.
The growth of electric vehicles has led to rapid development in lithium-ion batteries. Conductive carbon black additives play a key role in battery chemistry to increase the range and cycle life of lithium-ion batteries. The site currently can produce up to 50,000 metric tons of carbon black annually and Cabot plans to invest to upgrade the capabilities to produce battery grades.
“The acquisition of Tokai Carbon (Tianjin) is a natural extension for us as it aligns with our strategy to strengthen our global leadership positions while pursuing advantaged growth opportunities in high-growth, high-performance markets such as battery materials,” said Cabot President and Chief Executive Officer Sean Keohane. “With this acquisition, we will be better positioned to deliver solutions to meet the rapidly increasing demands for lithium-ion batteries and will do so by operating responsibly and investing in advanced environmental controls to reduce our impact.”
President and CEO of Tokai Carbon Co., Ltd., Hajime Nagasaka, said, “We are very pleased to transfer the business to Cabot and wish the employees great success with the new owner.”
Cabot will run the plant and intends to continue to supply current customers while conducting technology upgrades. The upgrades to manufacturing and environmental equipment will enable the site to manufacture conductive carbon black for battery materials as well as other carbon black products while meeting environmental standards.
The parties expect to close the transaction in the second fiscal quarter of 2022.