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During a webcast, Calgon Carbon Corp. provided additional information about its recent acquisition of Waterlink's Specialty Products Division. Through this transaction, completed on Feb. 18, Calgon Carbon acquired the operating assets of Waterlink's U.S.-based subsidiary and the stock of Waterlink (UK) Limited. The purchase price was approximately $50.1 million, which included $35.2 million in cash and an estimated $14.9 million in assumed liabilities and direct acquisition costs.
Known as Barnebey Sutcliffe in the U.S. and Sutcliffe Speakman in the UK, Waterlink Specialty Products is a provider of specialty activated carbons, value-added services, and related equipment for use in water and air purification, solvent recovery, odor control, and chemical processing. The organization employs nearly 250 people at 11 locations in the U.S. and the UK.
Commenting on the acquisition, John Stanik, Calgon Carbon's president and chief executive officer, said, "We believe we are creating a stronger company due to anticipated cost savings and growth through synergies and economies of scale." The acquisition is consistent with Calgon Carbon's strategic plan to strengthen its core carbon and service businesses through acquisitions and/or alliances.
In addition to substantially increasing Calgon Carbon's market position in coconut-based carbons, the acquisition enhances the company's leadership position in impregnated carbons, expands on-site service capabilities, and extends its solvent recovery product lines. The acquisition also complements existing product lines with the addition of potable and expanded custom reactivation and additional capabilities in industrial air purification. Also, Calgon Carbon's customer base will be broadened due to Barnebey Sutcliffe's and Sutcliffe Speakman's specialization in small volume customers.
Mr. Stanik added, "We are not only acquiring a company with excellent carbon and service capabilities that have been proven in the marketplace, but also a company with a strong historical financial performance that we expect will be accretive to earnings in 2004. Despite a challenging economic environment, the company maintained EBITDA levels over the past three years."
For the fiscal years ended 2001, 2002, and 2003, the company's earnings before income taxes, depreciation, and amortization (EBITDA) were $7.2 million, $7.3 million, and $7.5 million, respectively. For the corresponding periods, sales were $65.1 million, $64.0 million, and $66.9 million.
The entire webcast can be accessed at www.calgoncarbon.com.