Arkema to Divest its Activated Carbon and Filter Aid Business to Calgon Carbon

United States: CECA, a subsidiary of Arkema, announced that it has agreed to sell its wood-based activated carbon, reactivation and mineral-based filtration media business to Calgon Carbon Corporation. The transaction is expected to be valued at USD160.1 million including a cash purchase price of USD151.5 million, and the assumption of unfunded pension liabilities. Arkema’s activated carbon and filter aid business has six operating facilities in France and Italy that serves various markets including food and beverage, industrial and pharmaceutical market, drinking water and wastewater market. The transaction is expected to be completed by the end of 2016.

TechSci Research depicts that the acquisition of Arkema’s wood-based activated carbon and filter aid business by Calgon Carbon Corporation is expected to strengthen Calgon Carbon’s position in the Indian as well as European countries. The acquisition would aid the expansion of production capabilities of filtration media including diatomaceous earth and perlites. Moreover, it would broaden the company’s market to industries including pharmaceutical.

According to TechSci Research report, “Global Activated Carbon Market Forecast and Opportunities, 2019 ”, the global market for activated carbon is forecast to witness a CAGR of over 12% during 2014-19. Increasing awareness about mercury control coupled with government regulations to minimize mercury emissions, primarily from coal fired power plants is driving the demand for activated carbon in developed as well as developing markets over the next 5-6 years. The two widely available forms are powdered activated carbon (PAC) and granular activated carbon (GAC), with the former accounting for majority share in terms of the type of activated carbon used.