Calgon Carbon to acquire CECA’s activated carbon and filter aid business

The activated carbon and filter aid business employs around 300 people at six industrial sites in France and Italy. For the 12 months ended 31 December 2015, the business generated EBITDA (earnings before interest, taxes, depreciation and amortization) of approximately US$16.7 million and revenues of around US$102.5 million.

“Leveraging our brand, franchise and global distribution network, this planned acquisition would create a more balanced and diverse global platform to enhance our opportunities for long-term profitable growth,” said Randy Dearth, Calgon Carbon’s chairman, president and CEO.

“With its complementary wood-based activated carbon and reactivation services businesses, similar customer base and end markets, the activated carbon and filter aid business is a natural fit for us,” added Dearth.

“Importantly, the acquisition would also advance our expansion into stated strategic areas of focus by extending our production capabilities into adjacent filtration media – diatomaceous earth and perlites; broadening our end markets to include the pharmaceutical industry; and giving us an immediate gateway into the activated carbon market in India, one of our targeted emerging geographies. Finally, it would significantly enhance our position in Europe where we have operations that have been solidly performing for many years.”

Dearth said their post-closing value creation path includes a number of actions, including completing the wood carbon manufacturing de-bottlenecking project that they believe will enhance EBITDA margins, as well as pursuing opportunities to further extend the company’s reach into new market applications and geographies.

The deal is expected to close in the fourth quarter of 2016.