PQ Group Holdings Accelerates Transformation: Enters Arrangement to Market Overall performance Substances Company and Acquires Market Catalyst Activation Small business
MALVERN, Pa.–(Business enterprise WIRE)–PQ Team Holdings Inc. (NYSE:PQG), a main built-in and modern world wide provider of specialty catalysts, chemical substances and products and services, declared today that it has entered into a definitive agreement to promote its Overall performance Chemicals business to a partnership founded by Cerberus Capital Administration, L.P. and Koch Minerals & Buying and selling LLC for a order rate of $1.1 billion.
“We are energized by today’s announcement for the sale of our General performance Chemicals organization at a favorable valuation,” stated Belgacem Chariag, PQ’s Chairman, President and Main Executive Officer. “In 2019, we laid out a “More simple + Much better” strategic route aimed at driving increased price for our shareholders. The ideas we established in motion are now coming to fruition. At year-conclusion 2020, we finished the sale of the Functionality Components enterprise as a 1st action. With this arrangement to divest the Efficiency Chemicals small business, we are accelerating the upcoming and most vital stage in our strategic transformation. Our main Refining Providers and Catalysts Technologies businesses signify a distinctive possibility to reposition PQ as a pure play, high expansion enterprise.”
On the predicted shut in 2021 and finalization of internet hard cash proceeds, PQ programs to return cash to shareholders by means of a exclusive dividend of $2.50 to $3.25 for every share (matter to Board approval and declaration), which is expected to end result in a credit card debt reduction of $450 million to $550 million.
Citi is serving as guide monetary advisor with BMO Capital Marketplaces Corp. as co-advisor, and Ropes & Grey LLP is serving as lawful counsel to PQ in the sale of Functionality Substances. Jefferies, LLC served as economical advisor, and Kirkland & Ellis LLP served as legal advisor, to Cerberus and Koch. Jones Working day served as lawful advisor to Koch.
In addition, on February 25, 2021, PQ signed an arrangement to acquire Chem32, LLC from its founders for a order value of $44 million to enhance our Refining Solutions enterprise. Chem32 is a top provider of catalyst pre-activation expert services made use of in the production of conventional and renewable fuels. This addition, with its patented technological know-how and companies, is predicted to grow quickly and generate strong margins.
“We are extremely excited to welcome the Chem32 staff,” explained Kurt Bitting, President of PQ’s Refining Providers business enterprise. “Chem 32 diversifies our services offerings although offering us publicity to the swiftly growing renewable fuels sector.”
PQ management will host a meeting call and audio-only webcast on March 1, 2021 at 9:00 a.m. ET to focus on the transactions. Traders may well hear to the conference call stay by using phone by dialing 1 (877) 876-9174 (domestic) or 1 (785) 424-1669 (global) and use the participant code PQG032021. A reside audio webcast of the convention contact and presentation components can be accessed at http://trader.pqcorp.com. A replay of the conference contact/webcast will be produced out there at http://trader.pqcorp.com/activities-presentations.
Buyers:
Nahla A. Azmy
(610) 651-4561
[email protected]
About PQ Team Holdings Inc.
PQ Team Holdings Inc. is a top built-in and innovative international provider of specialty catalysts, chemicals and providers. We assistance customers globally by means of our strategically found community of manufacturing facilities. We believe that that our goods, which are predominantly inorganic, and expert services contribute to improving the sustainability of the ecosystem. We have three uniquely positioned specialty enterprises: Refining Products and services supplies sulfuric acid recycling to the North American refining sector Catalysts serves the packaging and engineering plastics and the worldwide refining, petrochemical and emissions manage industries and Effectiveness Chemical compounds provides diverse solution close takes advantage of, like own and industrial cleaning merchandise, gasoline productive tires, surface coatings, and food items and beverage goods. For extra facts, see our website at https://www.pqcorp.com.
Observe on Ahead-Seeking Statements
Some of the details contained in this press launch constitutes “forward-wanting statements.” Ahead-looking statements can be determined by text this kind of as “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “projects” and comparable references to upcoming periods. Forward-seeking statements are primarily based on our latest expectations and assumptions about our small business, the overall economy and other foreseeable future situations. Simply because forward-wanting statements relate to the foreseeable future, they are matter to inherent uncertainties, hazards and improvements in situations that are tricky to forecast. Examples of forward-searching statements consist of, but are not restricted to, statements relating to the sale of the General performance Chemical compounds enterprise phase, including the supposed use of proceeds therefrom, our potential expansion potential clients and long run strategic transactions. Our actual benefits may perhaps vary materially from those people contemplated by the forward-seeking statements. We caution you, therefore, versus relying on any of these ahead-looking statements. They are neither statements of historic point nor ensures or assurances of long term effectiveness. Significant elements that could lead to true final results to vary materially from individuals in the ahead-seeking statements contain, but are not minimal to, our skill to near on the sale of the Overall performance Chemicals enterprise phase on our anticipate timeline, our capability to efficiently combine Chem32, regional, national or world political, economic, business enterprise, competitive, industry and regulatory circumstances, together with the ongoing COVID-19 pandemic, tariffs and trade disputes, currency exchange rates and other variables, like those described in the sections titled “Risk Factors” and “Management Discussion & Investigation of Economical Condition and Benefits of Operations” in our filings with the SEC, which are out there on the SEC’s website at www.sec.gov. These ahead-looking statements speak only as of the day of this release. Components or gatherings that could bring about precise effects to differ could arise from time to time, and it is not attainable for us to forecast all of them. We undertake no obligation to update any ahead-wanting statement, no matter if as a outcome of new data, potential developments or if not, other than as may possibly be essential by applicable law.
