Accretive transaction to accelerate growth, expand geographical reach and enhance R&D capabilities in fast growing activated carbon segment
29/10/2013 — OSAKA, Japan — (BUSINESS WIRE)
Osaka Gas Chemicals Co., Ltd. (“Osaka Gas Chemicals”), a wholly owned subsidiary of Osaka Gas Co., Ltd (TOKYO:9532)(“Osaka Gas”), today announced it has entered into an agreement with AddSorb Holding AB to acquire all the shares of Jacobi Carbons AB (“Jacobi”), the world’s largest manufacturer and distributor of coconut shell activated carbon headquartered in Kalmar, Sweden, for an enterprise value of US$ 400 million. The transaction is expected to close in January 2014.
Osaka Gas Chemicals has a leading position in the activated carbon market in Japan through its subsidiary Japan EnviroChemicals, Ltd (“JEC”), who manufactures and distributes high-value-added activated carbons made from coconut shells and wood sawdust. Jacobi is the largest leading global coconut shell activated carbon manufacturer with a comprehensive and diverse product portfolio catering to a global blue-chip customer base across an array of end-market applications. The acquisition will reinforce both companies’ existing strengths in the activated carbon industry and create a global leader across key end-market applications, delivering significant additional value for customers.
Activated carbons are used in an increasing number of purification processes including, among others, drinking and process water filtration, air and gas purification, recovery of precious metals and purification of a wide range of food products. The market for activated carbons is expected to grow significantly due to more stringent global regulations of water and air pollution in developed countries and the improvement of living standards in emerging countries. In line with Osaka Gas’ growth ambitions outlined in ‘Field of Dreams 2020’, the development of environment and non-energy related businesses, including the expansion of the materials solutions business, are key areas of focus. As a result of the acquisition, Osaka Gas Chemicals will become the third largest manufacturer of activated carbons globally and the largest manufacturer of high value-added activated carbon made from coconut shells.
“Jacobi’s strong management team, led by CEO Anders Skeini, and high level of responsiveness to customer demands have been instrumental in transforming the business into a leading global player that consistently outpaces activated carbon market growth”, said Masataka Fujiwara, President of Osaka Gas Chemicals, “the acquisition of Jacobi is directly aligned with our strategic ambitions and enhances our existing capabilities in the attractive activated carbon market segment”.
“The combination of Jacobi and Osaka Gas Chemicals will greatly benefit our global customer base through an expanded product offering, enhanced R&D capabilities and additional end-market applications”, said Anders Skeini, CEO of Jacobi, “I look forward to Jacobi’s next chapter of development in cooperation with Osaka Gas Chemicals”.
Nomura International Plc acted as financial advisor to AddSorb Holding AB and SMBC Nikko Securities, Inc. acted as financial advisor to Osaka Gas Chemicals.
About Osaka Gas Chemicals
Incorporated in Japan in 1949, Osaka Gas Chemicals is engaged in the manufacturing and distribution of fine materials, carbon fiber, activated carbon fiber and adsorbents. It has made progress in technical developments for the intensive use of coal tar developed as a by-product of the utility gas production process by Osaka Gas. The company employs approximately 250 people, and together with JEC and the other 9 subsidiaries, comprises Osaka Gas Chemicals Group.
About Japan EnviroChemicals Ltd.
Incorporated in Japan in 2003, JEC is engaged in the manufacturing and distribution of activated carbon, wood and industrial preservatives. The company has a leading market position in activated carbons in Japan, with its array of coconut shell and wood sawdust activated carbon products. JEC employs approximately 110 people and has manufacturing operations in Japan, Philippines and Malaysia.
About Osaka Gas
Incorporated in Japan in 1897, Osaka Gas (TOKYO:9532) is a leading energy supplier with its core natural gas supply business serving 7 million customers in Japan’s Kansai region. With its portfolio of diversified energy businesses, Osaka Gas is developing into a multi-energy services provider of natural gas, electricity, LPG, district heating/cooling, and other services. Through its affiliate enterprises, the Osaka Gas Group is also active in various non-energy business fields.
About AddSorb Holding AB
Incorporated in Sweden, AddSorb Holding AB is the holding company of Jacobi.
Incorporated in Sweden in 1916, Jacobi is the largest global coconut shell activated carbon manufacturer with a comprehensive and diverse product portfolio. The company, which employs approximately 1,200 people globally, together with its subsidiaries, has manufacturing operations in China, France, Germany, India, Italy, Philippines, Sri Lanka, UK, US and Vietnam and reactivation plants in France and Germany. Jacobi’s activated carbon products are sold to its blue-chip customer base in over 100 countries through wholly owned subsidiaries in 19 countries across the globe.
Osaka Gas Chemicals Co., Ltd.
Shinji Sannoe, +81 (0)6-4393-0195
Management Planning Team, Planning Department
KEYWORDS: Europe Asia Pacific Sweden Japan
INDUSTRY KEYWORDS: Energy Oil/Gas Utilities Manufacturing Chemicals/Plastics Natural Resources Agriculture Forest Products Mining/Minerals Environment Retail Food/Beverage