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Cabot to Buy Norit for $1.1 Billion to Add Carbon Products

Cabot Corp., a U.S. maker of carbon black used in rubber tires, agreed to buy Norit NV for $1.1 billion to become the largest producer of activated carbon, which is used to cleanse smokestack emissions and water.

Private-equity firms Doughty Hanson & Co. and Euroland Investments BV are selling Amersfoort, Netherlands-based Norit. Cabot will finance the deal with $200 million in cash, $300 million from an existing credit facility and about $600 million of long-term debt, the Boston-based company said today in a statement. The purchase should close in 2012 and add 20 cents to 25 cents to earnings in the fiscal year that begins in October, Cabot said.