Tokai Carbon to acquire Sid Richardson Carbon and its affiliate companies

Tokai Carbon to acquire Sid Richardson Carbon and its affiliate  companies

Tokai Carbon  Co entered into an  agreement  to  acquire  100%  into the  US  carbon  black  manufacturer  Sid  Richardson  Carbon,  Ltd.  and its affiliate companies  (SRCG, Ltd.  and New  SRCG  Genpar,  LLC).

The transaction was  approved  by  the  Tokai  Carbon  Board  of  Directors  and  Tokai Carbon entered into a definitive agreement on June 26, 2018.

The acquisition is a part of Tokai Carbon’s three-year mid-term management plan (T-2018), under which the company is now shifting its focus from the business restructuring strategy (Phase 1 of T-2018)  to  the  growth strategy (Phase 2 of T-2018)  as  disclosed  in February,  2017.

Sid Richardson Carbon has three plants and is the manufacturer and seller of furnace black in the US , having strong  reputation  among  European,  North  American and Japanese tyre manufacturers.

The acquisition will help Tokai Carbon to expand expansion  into  the  North  American  market,  the  second  largest  market  after  China and build  a  global  supply  network  for  tire  and  rubber  product  manufacturers  while  broadening  its  worldwide  customer  base  to  include European and North American customers as well. Along with these, the Japanese company expects to draw on Sid Richardson Carbon’s unique technology strengths to improve Tokai Carbon’s productivity and strengthen our cost competitiveness.

Tokai Carbon drew on a portion  of  its  approximately  50  billion  yen  M&A  strategic  investment  budget  to  acquire  the  US  subsidiary  of  SGL  GE,  a  graphite  electrode  manufacturer,  in  November,  2017  and  consolidate  Tokai  Carbon  Korea,  a  fine  carbon  manufacturer,  in  May,  2018.  The  acquisition  of  Sid  Richardson  Carbon  at  this  time  represents  another  strategic  investment  toward  achieving  the  goals  of  the  mid-term management plan, said the company.

The  acquisition  of  Sid  Richardson  Carbon  will  contribute  to  Tokai  Carbon’s  ongoing  efforts  to  establish  itself  as  a  global  player  in  the  carbon  black  business.  The  acquisition  will  enable  Tokai  Carbon  to  expand  its  business, improve its profitability, and increase its corporate value.

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