Japanese based chemical manufacturer, Kuraray Co Ltd. will acquire American purifier company, Calgon Carbon Corporation (NYSE: CCC) for $1.1 billion.
Kuraray will buy Calgon for $21.50 a share, nearly a 63 percent increase from Wednesday’s closing price. Kuraray will also assume Calgon’s net debt of $1.3 billion. Calgon shares skyrocketed over 60 percent at Thursday’s open.
Through the acquisition, it will strengthen Kuraray’s growth strategy and global presence of its carbon and filtration, for air and water, based products. Calgon’s focus is to improve human health, and the environment through high quality products around the world.
In the recent years, Kuraray used its proprietary technology in the area of polymer chemistry and synthetic chemistry to develop resins, chemicals, fibers and textiles.
The merger will significantly improve Kuraray’s production and cutting expenses down.
Masaaki Ito, Kuraray’s Representative Director and President said, “Together, Kuraray and Calgon Carbon will help advance human health and environmental sustainability by providing high performance carbon materials to the market.”
Randy Dearth, Calgon Carbon’s Chairman, President and CEO, said, “Not only does this transaction deliver premium value to our stockholders, it also benefits our customers and employees by making 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.”
The two companies are expecting to close by the end of December 2017, pending on regulatory approval and stockholders’ approval. This will also make Calgon Carbon a wholly owned subsidiary.