Birla Carbon to acquire Columbian Chemicals
31 Jan 2011
The $29-billion diversified conglomerate Aditya Birla Group today confirmed an agreement to acquire the Atlanta-based Columbian Chemicals Company, from One Equity Partners, the merchant banking arm of J P Morgan Chase & Co. Columbian is the world's third-largest carbon black manufacturer after US-based Cabot and Germany's Evonik.
The Aditya Birla Group has bought One Equity Partners' equity in Columbian Chemicals through its associates, Alexandria Carbon Black Company and Thai Carbon Black Company Limited along with SKI Investment, an Aditya Birla Group Company.
''The acquisition of Columbian Chemicals catapults Birla Carbon to become a leading player globally in this sector, by raising its annual production to 2 million tons," said Aditya Birla Group chairman Kumar Mangalam Birla, while briefing the media.
Birla added, "We look upon the carbon black business as a core business that has a strong growth potential both in terms of revenues and earnings. This acquisition is in keeping with our objective of being a leader in every business that the Group operates in.
The Aditya Birla Group's Carbon Black business and that of Columbian Chemicals complement each other.
This acquisition will create a business which will have the advantage of cutting edge technology and low costs, and will have a truly global footprint.''