02/04/2011

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Birla Carbon to acquire Columbian Chemicals

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.Kumar Mangalam Birla, Chairman of Aditya Birla Group, said "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 t. 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.""Our vision has been to be a premium carbon black player, global in size and reach. The acquisition of Columbian Chemicals, which takes us closer to our vision, is a perfect fit for Birla Carbon. Their assets and the expertise of the team will provide a stronger platform for higher growth and ongoing success," said Birla.Dr. Santrupt Misra, CEO, Birla Carbon and Director, HR, of the Aditya Birla Group, added "We look forward to leveraging the strengths of both Columbian Chemicals and Birla Carbon. Their world-class service coupled with that of Birla Carbon, positions us well. Additionally, Columbian Chemicals accords us access to markets that we currently do not serve, thus enhancing our geographic reach. Columbian Chemicals also has a very strong research and development team of scientists engaged in process, technology and innovative products development. Columbian Chemicals has a rich legacy, a committed workforce and values that are in sync with our group values".The Aditya Birla Group says it is one of the most cost-efficient manufacturers of Carbon Black. Its operations span four countries, with six manufacturing plants. It caters to the requirements of leading tyre manufacturers globally. Columbian Chemicals operates 11 plants in nine countries.The acquisition is subject to customary approvals. The deal is expected to close in the second half of 2011.

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