Birla buys Columbian Chem for $875 mn

The Aditya Birla Group announced that it has acquired Columbian Chemicals Company.

The Aditya Birla Group today announced that it has entered into a definitive agreement to acquire the Atlanta based Columbian Chemicals Company in a USD 875 million deal.

The Aditya Birla Group has bought equity of One Equity Partners,the merchant banking arm of J P Morgan Chase & Co,in Columbian Chemicals through its associates,Alexandria Carbon Black Company and Thai Carbon Black Company Limited along with SKI Investment,an Aditya Birla Group Company,Aditya Birla Group’s Chairman Kumar Mangalam Birla told reporters here.

The group hoped to complete the deal by mid-2011,Birla said.

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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 tonnes.

“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,Birla said.

The Aditya Birla Group’s carbon black business and that of Columbian Chemicals complement each other. This acquisition will create a business which will have the advantage of cutting edge technology and low costs,and will have a truly global footprint,he said.