Aditya Birla Group to Acquire Columbian Chemicals

The Aditya Birla Group announced on 31 January 2011 that it entered into a definitive agreement to acquire Atlanta-based Columbian Chemicals Company (CCC) from One Equity Partners for a consideration of $875 million. One Equity Partners is the merchant banking arm of J. P. Morgan Chase & Co. The 100 per cent stake in CCC was bought by the Aditya Birla Group through its associates Alexandria Carbon Black Company and Thai Carbon Black Company. Alexandria Carbon Black Company and Thai Carbon Black Company will hold 21 per cent stake in CCC while SKI Investment, a group company is to pick up 58 per cent stake.

The CCC acquisition will enable Birla Carbon to become the leading player globally in the related sector, by raising the company’s annual production to two million tonnes. The synergy gain from the acquisition will be to the extent of $30-50 million annually on a recurring basis. The acquisition marked the Group’s progress in becoming a significant global player in its major businesses of cement, aluminium and carbon black.