CCMP Capital Advisors, LLC (“CCMP”) and PQ Holdings, Inc. (“PQ”) today
announced that they have signed a definitive agreement under which
affiliates of CCMP will acquire an approximate 47% interest in PQ from
affiliates of The Carlyle Group (“Carlyle”). PQ’s existing shareholders,
INEOS, Carlyle and management, will in the aggregate continue to own
approximately 53% of PQ. CCMP previously partnered with PQ’s management
team in a successful investment in the company in 2005.
Founded in 1831, PQ is a leading worldwide producer of specialty
inorganic performance chemicals, high-end catalysts and engineered glass
beads for the consumer, oil & gas, transportation safety, specialty
plastics and industrial markets. Throughout its 182-year history, PQ has
built a strong reputation for growth, product development and
operational excellence. The company remains at the forefront of the
industry by continuously developing innovative solutions to meet
customers’ productivity, product performance, environmental and
profitability objectives.
Mike Boyce, CEO of PQ, commented, “We are excited to partner with CCMP
again, a group I have known for over 20 years and partnered with in two
prior investments. I believe their extensive experience and expertise in
inorganic chemicals will add lasting value to PQ.”
Tim Walsh, Managing Director of CCMP and head of the firm’s industrials
practice, said, “Mike and his team of talented managers have established
PQ’s products as critical components in customers’ manufacturing
processes in a large and diverse set of end markets. We look forward to
working with them again to help drive the company’s next phase of growth
as it expands its product set into new and existing end markets and
geographies.”
Andy Currie from INEOS Capital said, “We are very pleased to welcome
CCMP as our new partner as, together with Mike and his team, we continue
to build on PQ’s global leadership position providing silica-based
chemistry, performance materials and specialty catalysts.”
Andrew Marino, Managing Director at Carlyle, said, “We are grateful to
Mike and his team for several years of partnership. Along with INEOS and
the management team, Carlyle has invested in and seen strong growth at
PQ during the period of our ownership. We wish Mike, INEOS and CCMP
continued success.”
Completion of the transaction, which is subject to regulatory approvals
and customary closing conditions, is expected late 2014 to early 2015.
For purposes of the term loans due August 2017 and second lien notes due
May 2018, this transaction will not be a Change of Control and such debt
will remain outstanding. No additional debt will be incurred by the
company.
The company is being advised by Credit Suisse Securities (USA) LLC,
Jefferies LLC, and Latham & Watkins LLP on the transaction. CCMP was
advised by Weil Gotshal & Manages LLP.
About PQ Corporation
Founded in 1831 and headquartered in Malvern, Pennsylvania, PQ
Corporation is an integrated, leading global innovator and manufacturer
of specialty inorganic performance chemicals, high-end specialty
catalysts and specialty glass materials. The company is comprised of
three divisions: (i) Performance Chemicals – producing sodium silicate,
specialty silicas and other high-performance chemical products for the
personal care, food, consumer cleaning, pulp & paper, electronics,
mining, oil processing and construction end-uses; (ii) Catalysts –
producing silica and specialty zeolite-based catalysts serving the high
density polyethylene polymerization, chemical synthesis, emissions
control, lube and diesel de-waxing and refining end-uses; and (iii)
Specialty Glass Materials – producing engineered glass materials serving
the transportation safety, oil & gas, polymer additive, metal finishing
and electronic packaging end-uses.
About CCMP Capital
CCMP Capital Advisors, LLC specializes in middle market buyouts and
growth equity investments of $100 million to $500 million in North
America and Europe. CCMP focuses on generating alpha through the
operational transformation of its portfolio companies. With offices in
New York, Houston and London, CCMP invests in four primary industries:
Consumer/Retail, Industrial, Energy and Healthcare. Selected investments
under management include: Aramark, Chaparral Energy, The Hillman Group,
Infogroup, Jamieson Laboratories, Jetro Cash & Carry, LHP Hospital
Group, Milacron, Newark Energy, Ollie’s Bargain Outlet and Pure Gym.
About INEOS
INEOS (www.ineos.com)
is a global manufacturer of petrochemicals, specialty chemicals and oil
products. It comprises 15 businesses each with a major chemical company
heritage. Its production network spans 51 manufacturing facilities in 11
countries throughout the world. INEOS products make a significant
contribution to saving life, improving health and enhancing standards of
living for people around the world. Its businesses produce the raw
materials that are essential in the manufacture of a wide variety of
goods: from paints to plastics, textiles to technology, medicines to
mobile phones – chemicals manufactured by INEOS enhance almost every
aspect of modern life.
About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager
with $203 billion of assets under management across 126 funds and 139
fund of funds vehicles as of June 30, 2014. Carlyle’s purpose is to
invest wisely and create value on behalf of its investors, many of whom
are public pensions. Carlyle invests across four segments – Corporate
Private Equity, Real Assets, Global Market Strategies and Solutions – in
Africa, Asia, Australia, Europe, the Middle East, North America and
South America. Carlyle has expertise in various industries, including:
aerospace, defense & government services, consumer & retail, energy,
financial services, healthcare, industrial, real estate, technology &
business services, telecommunications & media and transportation. The
Carlyle Group employs more than 1,600 people in 40 offices across six
continents.
Copyright Business Wire 2014