Cabot Corporation (NYSE:CBT) Q1 2024 Earnings Call Transcript

Operator: Thank you. One moment for our next question. Our next question comes from the line of John Roberts with Mizuho. Your line is now open.

John Roberts: Thank you. Sean, there’s a precipitated silica business for sale. Would that fit with the Reinforcement business?

Sean Keohane: Hey, John, I think we’re always looking at M&A to enhance the portfolio. I would say, the way we think through it is, first, if there is M&A, that would help our existing businesses in terms of global footprint to serve customers and build that position out. I would say, number one. Number two, in our chosen growth vectors, so in battery materials and inkjet, if there are attractive opportunities there that would strengthen our position, then we are always looking at those. And then I think the third area would be, are there logical adjacencies where the combination of our business and another one would be accretive. Now, with respect to precipitated silica, specifically, I think there are a couple of ways to think about it.

One is, you could get basic in the precipitated silica. The other is that you could use your technology platform like E2C to incorporate other materials into an advanced formulation. And that’s certainly something that we look at and think about. So, it’s definitely something that we evaluate. The prioritization of how we look at things would be strengthen our existing position, one. Number two, invest in or explore M&A to support the growth vectors. And then three, evaluate adjacencies such as the one you just described. Norma, I’m not sure, did we lose connection here?

Operator: Mr. Roberts, do we have another question?

John Roberts: No, just that one. Thank you.

Operator: All right, thank you.

Sean Keohane: Okay. Thank you, John.

Operator: At this time, I’m showing no further questions. I’d like to hand the conference back over to Mr. Keohane for closing remarks.

Sean Keohane: Okay. Great. Thank you, Norma. And thank you all for joining the call today and for your support of Cabot. And I look forward to speaking with you again next quarter. Thank you.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect. Everyone, have a wonderful day.