Ecovyst Inc. Finalizes Sale of Advanced Materials & Catalysts Segment to Technip Energies, Boosting Financial Flexibility
WAYNE, Pa. – Ecovyst Inc. (NYSE: ECVT), a key player in virgin sulfuric acid, regeneration services, and ex-situ catalyst activation, has successfully completed the sale of its Advanced Materials & Catalysts segment to Technip Energies. This strategic divestiture is poised to unlock significant shareholder value and enhance Ecovyst’s financial maneuverability.
The transaction, valued at approximately $530 million in net proceeds after taxes and transaction expenses, will substantially reduce Ecovyst’s leverage, bringing its Net Debt Leverage Ratio below 1.5x. A significant portion of these proceeds, $465 million, has been allocated to repaying the company’s Term Loan.
Kurt J. Bitting, CEO of Ecovyst, expressed optimism about the deal’s implications. “The sale of our Advanced Materials & Catalysts segment crystallizes the intrinsic value of this business, creating substantial benefit for our stockholders,” Bitting stated. “The resulting deleveraging and improved financial flexibility will be instrumental in executing our growth strategies and facilitating the active return of capital to our shareholders through our existing share repurchase program. We extend our gratitude to the Advanced Materials & Catalysts team for their invaluable contributions and wish them continued success as part of Technip Energies.”
Arnaud Pieton, CEO of Technip Energies, highlighted the strategic alignment of the acquisition. “This transaction marks a pivotal moment for Technip Energies,” Pieton commented. “By integrating the Advanced Materials & Catalysts business, a recognized leader in differentiated catalysts and advanced materials, with our core process technologies and engineering prowess, we are forging a comprehensive offering. This integrated approach will empower our clients to optimize efficiency, enhance reliability, and improve emissions performance across their operations. We are delighted to welcome the Advanced Materials & Catalysts teams and anticipate a collaborative journey toward achieving new growth milestones for our customers and stakeholders.”
The divestiture allows Ecovyst to sharpen its focus on its core Ecoservices business, which encompasses sulfuric acid recycling for the North American refining industry—critical for alkylate production—as well as the supply of high-quality virgin sulfuric acid for industrial and mining applications. Ecoservices also provides chemical waste handling and treatment, alongside ex-situ catalyst activation services for the refining and petrochemical sectors. This strategic refocus is expected to drive operational efficiencies and capitalize on the growing demand for sustainable chemical solutions.
From a financial perspective, the strategic deleveraging achieved through this sale is a critical step. A Net Debt Leverage Ratio below 1.5x positions Ecovyst favorably for future financing and investment opportunities. The company’s ability to return capital to shareholders via its repurchase authorization underscores a commitment to enhancing shareholder returns.
Technip Energies, a global engineering and technology company with leadership positions in areas such as LNG, hydrogen, and decarbonization, sees this acquisition as a strategic enhancement to its portfolio. The integration of advanced materials and catalyst expertise complements its existing strengths in process technologies, creating a more robust and vertically integrated service provider for the energy and chemical industries.
Ecovyst’s operational footprint, characterized by a network of strategically located manufacturing facilities, supports its mission to provide essential products and services while contributing to environmental sustainability. The company’s commitment to regeneration services, particularly in sulfuric acid, aligns with circular economy principles and reduces the environmental impact associated with acid production and disposal.
This divestiture is more than just a financial transaction; it represents a strategic repositioning for Ecovyst, enabling a more concentrated approach to its core Ecoservices operations and reinforcing its commitment to sustainable industrial solutions. The enhanced financial footing is expected to fuel innovation and growth initiatives within its specialized business segments.
Financial advisors for Ecovyst included Lazard Frères & Co. LLC, with Ropes & Gray LLP and Babst, Calland, Clements and Zomnir, P.C. serving as legal counsel. Technip Energies was advised by Evercore as financial advisor and Gibson, Dunn & Crutcher LLP as legal counsel.
About Ecovyst
Ecovyst Inc. operates as a leading integrated provider of virgin sulfuric acid, sulfuric acid regeneration services, and ex-situ catalyst activation services. Through its strategically positioned network of manufacturing facilities, the company supports a diverse customer base and contributes to environmental sustainability. Its Ecoservices division is crucial for the North American refining industry, providing vital sulfuric acid recycling for alkylate production and supplying high-purity virgin sulfuric acid for industrial and mining sectors. Ecoservices also offers comprehensive chemical waste management and ex-situ catalyst activation solutions.
About Technip Energies
Technip Energies is a world-renowned technology and engineering firm specializing in key markets such as LNG, hydrogen, ethylene, sustainable chemistry, and carbon management. The company plays a significant role in the development of energy, energy derivatives, decarbonization, and circularity markets. Its integrated business model, encompassing Technology, Products and Services (TPS) and Project Delivery, transforms innovative concepts into scalable industrial realities. With a global team of over 17,000 professionals across 34 countries, Technip Energies is dedicated to fostering prosperity while upholding sustainability principles. The company reported revenues of €6.9 billion in 2024 and is listed on Euronext Paris.
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