Publish Date : 13-Sep-2014
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.
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