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Cabot Corp. to Buy Norit for $1.1 Billion, Add Activated Carbon

Cabot Corp. (CBT) agreed to buy Norit NV, the largest producer of activated carbon, for $1.1 billion.

The transaction gives Cabot a high-margin business that’s not subject to the cyclicality of some other chemicals, Cabot said in a statement today.

Cabot expects to finance the purchase with $200 million in cash, and $300 million in borrowings under its existing revolver, according to the statement. The Boston-based company plans to issue approxximately $600 million of long-term debt prior to closing.

To contact the editor responsible for this story: Jessica Resnick-Ault at jresnickault@bloomberg.net

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