August 26, 2011 – BUSINESS WIRE — Cabot Corp. (NYSE:CBT) will sell its Supermetals business to Global Advanced Metals (GAM), a supplier of tantalum ore to the Supermetals business. GAM will pay a minimum of $400 million in total cash consideration, and should close the transaction by end of CY2011.

The Supermetals business manufactures high-end products for the electronics, aerospace, chemical manufacturing and other industries.

Cabot will focus its resources on growth initiatives in other businesses, aiming for adjusted earnings per share of $4.50 in 2014, said Patrick Prevost, Cabot president and CEO. Cash proceeds generated from the sale will allow Cabot to pursue potential acquisitions.

Over the past eight quarters, the Supermetals business recorded an average quarterly EBITDA of $13 million. The transaction includes an initial cash payment of $175 million when the transaction closes. Additional cash consideration, including contingent payments based on the future performance of the acquired business, will total a minimum of $225 million and be paid within a two-year period. Cabot will maintain its mining operation in Manitoba, Canada where the company mines cesium for its Specialty Fluids Business and tantalum.

Bryan Ellis, GAM CEO, predicts that the Supermetals business will help GAM create a tantalum-focused enterprise with strong future potential. The businesses share an ethical "conflict-free" product sourcing, employee safety and strict environmental responsibility.

Goldman, Sachs & Co. is the lead advisor for the transaction. Cabot Corp. was also advised by J.P. Morgan.

Cabot Corporation is a global specialty chemical and performance materials company. Cabot makes capacitor materials, drilling fluids, fumed silica, and other materials. The company’s website is: www.cabot-corp.com.

Global Advanced Metals supplies tantalum ore for the electronics industry, specifically mobile phones, digital cameras, laptops, computer monitors and televisions. The company