Kuo Exits Carbon Black JV

Mexican Conglomerate Grupo Kuo has agreed to sell its 60% share in its Negro de Humo (Nhumo) joint venture to partner Cabot International, it says. Cabot, which has held about 40% of the JV since 1990, adds the 60% equity for $105m, with $80m payable on the deal’s close, Cabot says. At the closing, 100% of the stock will be changed over to Cabot shares, and Kuo will receive $25m through the redemption of preferred shares that have 6.0% annual dividend. The deal is slated to close by fall 2013, pending regulatory approvals. Cabot highlights Nhumo’s top spot as a carbon black producer in Mexico and explains the buy as building Cabot’s carbon black business in an important growth market. The JV had adjusted Ebitda generation of $41m for fiscal 2012. Grupo Kuo was advised by Atlas Advisors and worked with external law firms Basham, Ringe y Correa and Piza Abogados. Cabot was advised by law firm Santamarina y Steta and did not use an external investment bank advisor.