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Global Advanced Metals Acquires Cabot Supermetals
Thursday, August 25, 2011
ACQUISITION OF CABOT SUPERMETALS CREATES VERTICALLY INTEGRATED GLOBAL TANTALUM PRODUCTS GROUP
Global Advanced Metals (GAM) is pleased to announce it has entered into an agreement to buy the Supermetals business of Cabot Corp. (NYSE: CBT) as a key part of its long-term growth strategy to become a global, vertically integrated leader in the supply and development of tantalum products.
Cabot Supermetals (which will trade as GAM Technology) operates substantial tantalum manufacturing plants in Boyertown, Pennsylvania, and Aizu, Japan. The operations convert tantalum concentrate and scrap into tantalum products used predominately in the electronics, aerospace and chemical industries. The acquisition does not include Cabot Corp’s tantalum mining operation in Canada.
GAM is a global leader in the production of tantalum concentrate (tantalum pentoxide) from its Wodgina mine and Greenbushes plant in Western Australia. The company’s operations at Wodgina, near Port Hedland, and Greenbushes, near Bunbury, contain the world’s largest known resources of tantalum ore.
Chief Executive Officer Bryan Ellis said that the acquisition of Cabot Supermetals, expected to be complete by the end of 2011, would transform GAM into a vertically integrated tantalum mining and manufacturing company.
“The acquisition of the Boyertown and Aizu plants presents us with an opportunity to meet the rising demand from the electronics industry for higher performance tantalum powder and to develop high quality metallurgical products for aerospace and other applications,” said Mr Ellis.
Andrew O’Donovan, existing general manager of Cabot Supermetals and the president designate of GAM Technology, said the acquisition was an excellent strategic fit for both businesses, their customers and the employees.
“We are looking forward to joining the GAM team which has a long-term strategic outlook for the tantalum value chain. We already share a common approach to ethical product sourcing, employee safety and strict environmental responsibility,” Mr O’Donovan said.
“The vertical integration of our businesses will allow us to continue to focus on delivering and developing market-leading technologies, product quality and customer service.”
Both GAM and Cabot Supermetals produce their tantalum products from sustainable and ethical sources of supply as part of their commitment to global efforts to eliminate conflict-mined material from the supply chain.
GAM produces all its tantalum pentoxide from material mined in Western Australia while Cabot Supermetals was audited in 2010 by the leading electronics industry association and a leading sustainability group and found to comply with relevant protocols to ensure sustainable and ethical sources of supply.
GAM will continue to be a major supplier of concentrate and metal products to the tantalum industry through its GAM Resources and GAMTRAX trading businesses.
Gryphon Partners were GAM’s leading advisor for the transaction with significant financial and technical input from GAM’s lead shareholder, Resource Capital Funds (RCF).
More information on GAM and tantalum is available at www.ffc347e772.nxcli.io
For more information:
Anthony Hasluck
Managing Director
Clarity Communications
Tel: +618 9380 0700
Mob: 0438 522 194
Email: anthony.hasluck@claritycommunications.com.au