On Jan. 31, India’s Aditya Birla Group disclosed it has entered into a definitive agreement to acquire U.S.-based Columbian Chemicals Company from One Equity Partners, the merchant banking arm of J. P. Morgan Chase & Co.
Aditya Birla has purchased One Equity Partners’ equity in Columbian Chemicals through its associates Alexandria Carbon Black Co. and Thai Carbon Black Co., along with SKI Investment, an Aditya Birla Group company.
Briefing the media on this development, Aditya Birla Group chairman Kumar Mangalam Birla said, “the acquisition of Columbian Chemicals catapults Birla Carbon to become a leading player globally in this sector, by raising its annual production to two million tons. 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.
“Our vision has been to be a premium carbon black player, global in size and reach,” Birla continued. “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.”
The Aditya Birla Group operates six carbon black manufacturing plants in four countries, catering to the requirements of numerous tire manufacturers. Columbian Chemicals operates 11 plants in 9 countries. The acquisition is subject to customary approvals, Aditya Birla notes, and is expected to close in the second half of 2011. (Tyres & Accessories)
