Calgon Carbon Corporation (NYSE: CCC) vaulted on stock markets Thursday after the company agreed to be acquired by Kuraray at $21.50 per share in cash.
The two firms’ boards unanimously approved the deal, by which Kuraray will acquire Calgon Carbon for about $1.1 billion. They also gave the thumbs-up to a transaction value in excess of $1.3 billion, including Calgon Carbon’s net indebtedness. The transaction remains subject to customary closing conditions, including regulatory approvals and approval by Calgon Carbon stockholders. The parties are targeting a closing by the end of the year.
The acquisition will be completed through a merger of a newly-created subsidiary of Kuraray with and into Calgon Carbon, with Calgon Carbon as the surviving corporation.
A news release out Thursday reports that, while this acquisition will enhance the Tokyo-based Kuraray’s growth strategy and global presence in activated carbon and filtration media, it intends to operate Calgon Carbon as a separate subsidiary of Kuraray. The companies will align the organization and operation for optimal customer support from Calgon Carbon’s world headquarters in Pittsburgh.
Kuraray and Calgon Carbon insist they have complementary products and services, and the combined organization will continue to focus on the highest quality activated carbon and filtration media products, equipment and services for customers around the world.
Calgon CEO Randy Dearth says the deal makes “Calgon Carbon part of a much larger, stronger global company with resources to fully support our global activated carbon, filtration media and service businesses now, and well into the future.”
Shares in Calgon triumphed $8.15, or 61.7%, to $21.35.
