Heat Treat Industry News

August 31, 2011

Cabot Supermetals business to be bought by Global Advanced Metals

The Cabot Corp., Boston, Mass. has entered into an agreement to sell its Supermetals business to Global Advanced Metals (GAM) for a minimum of $400 million in total cash consideration, company officials announced today. The transaction is subject to regulatory approval and is expected to close by the end of the calendar year.

GAM is a global leader in the supply of tantalum ore, a raw material used by the Supermetals business in the manufacture of high-end products to the electronics, aerospace, chemical manufacturing and other industries.

"We are pleased to have reached an agreement with GAM at an attractive value," said Patrick Prevost, Cabot president and chief executive officer. "While we have repositioned the Supermetals business to be a solid contributor to Cabot over the past two years, we believe that the specialty metals nature of this business does not fit the long-term direction for Cabot. GAM's integrated business model will enable them to better manage the historical cyclicality of this business. This transaction allows us to focus our resources on growth initiatives in our other businesses as we remain focused on achieving our target of adjusted earnings per share of $4.50 in 2014. In addition, cash proceeds generated from the sale will allow us to pursue potential acquisitions as part of our portfolio management strategy, which we believe will create higher value for our shareholders."

www.cabot-corp.com

http://hts.asminternational.org/

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