“The planned sale of Performance Materials at an attractive valuation marks a significant milestone on our ‘Simpler and Stronger’ strategic path, as we target a portfolio reflecting both higher top-line growth and higher margins,” said Belgacem Chariag, PQ’s chairman, president and CEO.

Chariag added that the group’s end goal for its ‘Simpler and Stronger’ plan is to focus on its high-growth, high-margin Catalysts and Refining Services businesses.

Consequently, it is launching a review of strategic alternatives for its Performance Chemicals arm, which Chariag described as “a healthy business with customers and attributes that are distinct from our Catalysts and Refining Services segments.”

PQ expects to use proceeds from the sale of the Performance Materials business along with a portion of existing cash to reduce debt by about $460 million, while also allocating up to $250 million to a planned special dividend to shareholders, which is subject to board approval.

For TJC, the deal is its seventh transaction in the chemicals sector. The New York-based investor also owns specialty polymers and additives company Polymer Solutions Group and specialty chemicals company Vantage.

Author: Elaine Burridge, Freelance Journalist