PQG - PQ Group Holdings to Sell Performance Chemicals Business

PQ Group Holdings Inc. (NYSE: PQG) announced entry into a definitive agreement to sell its Performance Chemicals business to a partnership established by Cerberus Capital Manage, L.P and Koch Minerals & Trading LLC for a value of USD 1.1 Billion.

“We are excited by today’s announcement for the sale of our Performance Chemicals business at a favorable valuation,” said Belgacem Chariag, PQ’s Chairman, President and Chief Executive Officer. “In 2019, we laid out a “Simpler + Stronger” strategic path aimed at driving greater value for our shareholders. The plans we set in motion are now coming to fruition. At year-end 2020, we completed the sale of the Performance Materials business as a first step. With this agreement to divest the Performance Chemicals business, we are accelerating the next and most critical step in our strategic transformation. Our core Refining Services and Catalysts Technologies businesses represent a unique opportunity to reposition PQ as a pure play, high growth company.”

The transaction is expected to close later in 2021.  The company plans to return capital to shareholders through a dividend of USD 2.50 to USD 3.25 per share which may result in a debt reduction of USD 450 Million to USD 550 Million.  Citi is acting as lead financial advisor with BMO Capital Markets Corp. as co-advisor as Ropes & Gray LLP serves as legal counsel to PQ in the sale of Performance Chemicals.

Previously on February 25th, PQ signed an agreement for acquire Chem32, LLC from its founder for a price of USD 44 Million to complement its Refining Services Business. “We are very excited to welcome the Chem32 team,” said Kurt Bitting, President of PQ’s Refining Services business. “Chem 32 diversifies our service offerings while giving us exposure to the rapidly growing renewable fuels industry.”

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