Pittsburgh Technical Council

Calgon Carbon Finalizes Largest Acquisition

Calgon Carbon Finalizes Largest Acquisition

Article Published: November 2, 2016

CalgonCalgon Carbon Corporation (NYSE: CCC) (Calgon Carbon, or the Company) announced that it completed its acquisition of the wood-based activated carbon, reactivation and mineral-based filtration media business (the Activated Carbon and Filter Aid Business, or the Business) from CECA.

At closing, Calgon Carbon paid €140.7 million ($153.0 million) in cash and assumed €6.5 million ($7.1 million) of unfunded pension liabilities. The cash portion of the purchase price was funded through borrowings under the Company’s recently upsized $300 million revolving credit facility.

The combined company is expected to be an industry leader in the activated carbon and filtration media market, with enhanced diversification, a strong presence in Europe, and an expanded reach into emerging countries. The Business will be integrated into Calgon Carbon’s European operations and conduct business under the name Chemviron.

As previously communicated, the transaction is expected to be accretive to Calgon Carbon’s fully diluted earnings per share in 2017, excluding purchase accounting adjustments, by $0.08 to $0.11. The Company continues to expect to improve the Business’ EBITDA by 40% or more by 2019 through a combination of synergies, de-bottlenecking of the wood-based activated carbon manufacturing facility, and other operational improvement initiatives.

“I am extremely pleased to announce the completion of the acquisition of the Activated Carbon and Filter Aid Business – a transaction that is a natural and strategic fit for Calgon Carbon,” said Randy Dearth, Calgon Carbon’s Chairman, President, and Chief Executive Officer. “With its complementary wood-based activated carbon and reactivation services, and its adjacent diatomaceous earth and perlite filtration media capabilities, this addition creates a more balanced and diverse global platform from which we expect to deliver incremental value to our customers and shareholders. 

“We welcome the talented European workforce of the Business to the Calgon Carbon team, and look forward to leveraging the combination of our deep operational knowledge and technical skills. Working together, our near-term value creation path for the Business continues to include completing the wood-based activated carbon manufacturing de-bottlenecking project that we believe will significantly enhance EBITDA margins,” concluded Mr. Dearth.

Houlihan Lokey acted as Calgon Carbon’s financial adviser and Jones Day acted as Calgon Carbon’s legal counsel for the transaction. Pure Water. Clean Air. Better World. Calgon Carbon Corporation (NYSE:CCC) is a global leader in innovative solutions, high quality products and reliable services designed to protect human health and the environment from harmful contaminants in water and air.

As a leading manufacturer of activated carbon, with broad capabilities in ultraviolet light disinfection, the Company provides purification solutions for drinking water, wastewater, pollution abatement, and a variety of industrial and commercial manufacturing processes. Calgon Carbon is the world’s largest producer of granular activated carbon and supplies more than 100 types of activated carbon products - in granular, powdered, pelletized and cloth form – for more than 700 distinct applications.

With the recent acquisition of complementary wood-based activated carbon and filtration media capabilities located in Europe, Calgon Carbon becomes an even more global and diverse industry leader in activated carbon, reactivation, and filtration media in the form of diatomaceous earth and perlites.

Headquartered in Pittsburgh, Pennsylvania, the Company employs approximately 1,400 people at 21 manufacturing, reactivation, and equipment fabrication facilities in the U.S., Asia, and in Europe, where Calgon Carbon is known as Chemviron. For more information about Calgon Carbon’s leading activated carbon, filtration media, and ultraviolet technology solutions, visit www.calgoncarbon.com. 

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