PQ Group Holdings Inc., Malvern, Penn., an integrated global provider of specialty catalysts, chemicals, and services, announced on March 1 it has entered into a definitive agreement to sell its Performance Chemicals business, which includes Canadian-based subsidiary National Silicates, to a partnership established by Cerberus Capital Management LP, New York City and Koch Minerals & Trading LLC, Wichita, for a purchase price of $1.1 billion.
PQ will retain its core Refining Services and Catalysts Technologies businesses, which it said will allow the company to reposition as a pure play, high-growth company.
Upon the anticipated close in 2021 and finalization of net cash proceeds, PQ plans to return capital to shareholders through a special dividend of $2.50-$3.25 per share, which is expected to result in a debt reduction of $450-$550 million.
In other news, on Feb. 25, PQ signed an agreement to acquire Chem32 LLC, Orange, Texas, from its founders for a purchase price of $44 million to complement their Refining Services business. Chem32 is a supplier of catalyst pre-activation services used in the production of traditional and renewable fuels. This addition, with its patented technology and services, is expected to grow rapidly and generate strong margins.