On February 28, 2022, the Company purchased 100% of the registered capital of Tokai Carbon, a carbon black manufacturing facility, from Tokai Carbon Group for a net purchase price of $9 million, consisting of cash consideration of $14 million, including customary post-closing adjustments, and net of $5 million of cash acquired.

The provisional estimates of the fair value of assets and liabilities acquired as of February 28, 2022 are set forth below along with the calculation of the Gain on bargain purchase of a business based on the cash consideration.

	(In millions)
Fair value of asset acquired
Cash	$	5
Accounts and notes receivable		5
Inventories		11
Prepaid expenses and other current assets		7
Property, plant and equipment		12
Amounts attributable to assets acquired		40

Fair value of liabilities assumed
Accounts payable and accrued liabilities		(2	)
Amounts attributable to liabilities assumed		(2	)

Total identifiable net assets		38

Cash consideration		14

Gain on bargain purchase of a business	$	24

The excess of the fair value of the net assets over the purchase price was recorded as a gain of $24 million. The Gain on bargain purchase of a business arose primarily due to necessary equipment upgrades that will be required after the purchase to continue to utilize the existing assets.

Cabot paid the $14 million of cash consideration during the third quarter of fiscal 2022.