TOKYO (Reuters) - Japanese chemical manufacturer Kuraray Co Ltd (3405.T) will buy U.S. firm Calgon Carbon Corp (CCC.N) for $1.107 billion, Kuraray said on Thursday, adding the carbon materials firm as one of its core businesses.
Kuraray said it would buy all of Calgon Carbon’s shares for $21.50 each - a premium of 62.9 percent to the Pittsburgh-based company’s share price on Wednesday of $13.20. Including net debt, the deal is worth over $1.3 billion, the U.S. firm said.
Kuraray said it aims to leverage Calgon Carbon’s global presence to expand its carbon materials business in areas including energy and water. The acquisition would speed up innovation and reduce costs, Kuraray said.
Calgon Carbon’s products and services include drinking and wastewater purification equipment and ultraviolet light disinfection. It has production and sales bases in seven and 16 countries respectively.
Kurarary said it planned to complete the deal - which will be funded by debt and is subject to shareholder and regulatory approval - within the year. It will make Calgon Carbon a wholly owned subsidiary, it added.
Reporting by Thomas Wilson; Editing by Christian Schmollinger