Kuraray purchases Calgon Cargon, maker of water and air purification systems
Kuraray Co. Ltd has agreed to purchase Calgon Carbon Corp. (NYSE: CCC), a maker of water purification systems, for approximately $1.3 billion. The deal will enhance the buyer’s growth strategy for the activated carbon and filtration media market. Filter media is anything placed in a filter that changes the quality of water that passes through it.
For nearly 75 years, Calgon Carbon has provided products and services to remove harmful contaminates from the water and air. The Pittsburgh-based target uses carbon technologies to produce purification systems for drinking water, odor control, wastewater, and pollution abatement. Calgon Carbon will merge with a newly-created Kuraray subsidiary, which will be branded under the Calgon Carbon name.
“Together, Kuraray and Calgon Carbon will help advance human health and environmental sustainability by providing high performance carbon materials to the market,” states Kuraray president Masaaki Ito. The combined organization will focus on the “highest quality activated carbon and filtration media products, equipment and services” for its primarily American, European and Japan customers.
Kuraray is a Japanese chemical manufacturer founded in 1926 and produces a variety of chemicals, fibers, resins, textiles, medical products and other materials. The buyer is based in Tokyo and has overseas subsidiaries in 28 countries outside Japan. It’s main manufacturing facilities are located in Kurashiki, Okayama.
Other middle-market deals involving water treatment systems and materials include: ProAct Services’ purchase of Thermtech Inc., a manufacturer of waste heat and thermal oxidizer systems; European investment group EQT’s acquisition of Innovyze, a U.S.-based software developer for smart water infrastructure modeling, from Stantec Inc. (NYSE: STN); and Maroon Group LLC’s purchase of Cadence Chemical Corp., a national distributor of chemicals for the water treatment industry.
Morgan Stanley & Co. LLC (NYSE: MS) is acting as financial adviser to Calgon Carbon, while Jones Day is serving as legal counsel. Goldman Sachs & Co. (NYSE: GS) is serving as financial adviser to Kuraray, and Mayer Brown LLP is serving as legal counsel.