Shares of Calgon Carbon shot up by more than 61 percent in midday trading Thursday after the company announced it would be acquired by Japanese chemical manufacturer Kuraray.
Kuraray will pay $1.1 billion in cash, or $21.50 a share, for the Pittsburgh-based water purification company in a deal targeted to close by the end of this year. The stock closed Wednesday at $13.20 a share and jumped as high as $21.45 on Thursday.
Calgon Carbon manufactures over 100 types of activated carbon products, which help remove harmful contaminants from water and air. The company has around 1,400 employees at facilities in the U.S., Asia and Europe.
President of Kuraray Masaaki Ito said in a statement that adding Calgon Carbon is about an "expansion of our carbon materials business." Kuraray hopes to combine the companies' products and services to control even more of the activated carbon market.
Kuraray plans to operate Calgon Carbon as a separate subsidiary, leaving the company's headquarters in Pittsburgh. Calgon Carbon CEO Randy Dearth said in a statement the deal makes his company a "part of a much larger, stronger global company to fully support our" businesses.
As the deal closes, Morgan Stanley is financially advising Calgon Carbon and Goldman Sachs financially advising Kuraray.