Cabot Sheds Specialty Fluids Unit to Chinese Firm

Alpharetta, GA-based specialty chemicals and performance materials firm Cabot Corporation closed the sale of its Specialty Fluids business to Chinese firm Sinomine (Hong Kong) Rare Metals Resources Co. Limited, the company announced in a recent release. 

“We are pleased to have completed the sale of the Specialty Fluids business to Sinomine at an attractive value for our shareholders. I would like to thank the Specialty Fluids team for their hard work over the years to generate strong performance for the company, and those efforts are reflected in this transaction,” Cabot’s president and chief executive officer, Sean Keohane, said in a statement.

Sinomine, a subsidiary of Sinomine Resoure Group Co. Ltd., paid Cabot $135 million for the business. The American firm said additional cash considerations could include up to $5 million in royalties for lithium products over the next ten years. The Specialty Fluids business generated $10 million in earnings during the fiscal year 2018 before interest, tax, depreciation, and amortization (EBITDA). 

“This transaction enables us to better focus our efforts on advantaged growth opportunities in our core businesses and further execute on our ‘Advancing the Core’ strategy,” Keohane said in the release. 

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