The Performance Chemicals business is a major global producer of sodium silicates, specialty silicas and zeolites used in a broad range of applications, such as personal and industrial cleaning products, fuel-efficient tires, surface coatings and food and beverage products.

“Together with Koch, we look forward to leveraging our combined operational and industry expertise to drive PQ Performance Chemicals’ continued success as an independent company,” said Dev Kapadia, senior managing director at Cerberus. The business will continue to operate under the PQ brand after the transaction has completed, expected during 2021.

 “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,” said PQ’s chairman, president and CEO Belgacem Chariag.

Upon finalization of net cash proceeds, PQ plans to return capital to shareholders through a special dividend of $2.50 to $3.25 per share (subject to board approval and declaration), which is expected to result in a debt reduction of between $450-$550 million.

Last December, and as a first step in its restructuring strategy, PQ completed the sale of its Performance Materials business to private equity firm The Jordan Company for $650 million.

In a separate move, the group has also agreed to buy Chem32 for $44 million, complementing its Refining Services business. Located in Orange, Texas, USA. The company is a leading supplier of catalyst pre-activation services used in the production of traditional and renewable fuels.

“Chem 32 diversifies our service offerings while giving us exposure to the rapidly growing renewable fuels industry,” said Kurt Bitting, president of PQ’s Refining Services business. PQ said the business, with its patented technology and services, is expected to grow rapidly and generate strong margins.

Author: Elaine Burridge, Freelance Journalist