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Aditya Birla Group acquires Columbian Chemicals

Business

The Aditya Birla Group has announced the completion of the transaction relating to its acquisition of the Atlanta based Columbian Chemicals Company, subsequent to having obtained all regulatory approvals in 7 different jurisdictions. The acquisition of Columbian Chemicals was made at a price of US $ 875 million. It catapults the Aditya Birla Group to the world’s No 1 carbon black producer. The newly constituted Board of Directors for Columbian Chemicals is chaired by Kumar Mangalam Birla, the Aditya Birla Group, Chairman. Other Directors from the Group, include Rajashree Birla, Rajiv Dube, Santrupt Misra, DD Rathi and Kevin Boyle, CEO, Columbian Chemicals.
“We view the Carbon Black business as a significant global business in our portfolio. There is a lot to be derived from this coming together of the two entities. Columbian Chemicals’ excellent R&D capability, multiple speciality products, the customer connect in North America and South America, coupled with committed teams, will add to the strength of the Carbon Black business. Likewise, our strength in scale economies, managing large capacity plants and managing multiple emerging markets, will be leveraged. This, together, with the experience and expertise that our teams have in growing an acquired company’s revenues and earnings significantly, should enable us take the Carbon Black business to a far higher plane,” said Mr Birla.
“The completion of the acquisition of Columbian Chemicals is indeed a milestone in our Carbon Black business. At one stroke it doubles our capacity, from 1 million tons to 2 million tons. It extends our geographic reach. Our global footprint now spans 12 countries – India, Thailand, Egypt, China, USA, Brazil, Korea, Spain, Canada, Hungary, Germany and Italy, where we collectively have 17 state-of-the-art manufacturing units. The deal helps in giving us a foothold in the mature markets of North America and strengthens our position in Europe and in emerging markets. Our focus is on unrelenting value creation and optimizing costs through innovations in areas such as logistics, sourcing and technology. We expect synergies in excess US $ 50 million,” added Dr Santrupt Misra. The Aditya Birla Group is among the most cost efficient manufacturers of carbon black. It is a global provider of high quality carbon black additives that cater to the requirements of leading tyre and other rubber manufacturers. Its products also service the ink and plastic segments.

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