Calgon Carbon Corporation (CCC) and Japan's Kuraray Co. announced that their respective board have unanimously approved, and the parties have entered into, a definitive merger agreement under which Kuraray will acquire Calgon Carbon for $21.50 per share in cash, which equates to an equity value of approximately $1.1B, and a transaction value in excess of $1.3B, including Calgon Carbon's net indebtedness.

The transaction remains subject to customary closing conditions, including regulatory approvals and approval by Calgon Carbon stockholders. The parties are targeting a closing by the end of December, 2017.

The acquisition will be completed through a merger of a newly-created subsidiary of Kuraray with and into Calgon Carbon, with Calgon Carbon as the surviving corporation. Shares of Calgon, a manufacturer of activated carbon with capabilities in ultraviolet light disinfection, are up 59%, or $7.80, to $21.00 in premarket trading.