CCMP Capital’s PQ Corp and Eco Services merge

PQ Corporation and Eco Services Operations LLC are merging to form a global producer of inorganic specialty materials and catalysts. No financial terms were disclosed. PQ’s current backers, which include CCMP Capital and INEOS Capital, will remain as shareholders of the combined business. The same applies to Eco Services’ current backers, which also includes CCMP Capital. Also, PQ President and CEO George Biltz, will lead the combined company while Mike Boyce, current chairman of both PQ and Eco Services, will remain in that role when it comes to the merged company.


August 18, 2015 — Malvern, PA – PQ Corporation (“PQ”), a leading global provider of specialty inorganic performance chemicals, high-end catalysts and engineered glass beads, and Eco Services Operations LLC (“Eco Services”), the North American leader in sulfuric acid recycling services, today announced they are combining to form a leading global producer of inorganic specialty materials and catalysts positioned to deliver exceptional service and sustainable and innovative products to customers. PQ’s existing shareholders (affiliates of CCMP Capital, INEOS Capital, and management), and Eco Services’ existing equityholders (affiliates of CCMP Capital and management) will remain as shareholders of the combined business and continue to support the strategic growth initiatives for each of the companies.

The transformative transaction will add a complementary business line to PQ’s existing product offerings, creating a diverse, growing inorganic chemicals company with world-class capabilities across four businesses: Catalysts (silica and specialty zeolite-based catalysts), Performance Chemicals (specialty inorganic chemicals), Potters (engineered glass materials) and Eco Services (sulfuric acid recycling services and virgin sulfuric acid). Each division will continue to focus on the unique, value-added solutions they bring to their respective customers, while leveraging the combined strength of the businesses. The combined company will retain the PQ Corporation name.

George Biltz, President and Chief Executive Officer of PQ Corporation, will lead the combined company with the support of an outstanding management team and a talented, dedicated group of over 2,600 employees globally. Mike Boyce, currently Chairman of both PQ Corporation and Eco Services, will remain as Chairman of the Board of the combined company.

Biltz said, “The merger brings together two leaders in the inorganic chemicals industry with complementary profiles and exciting growth opportunities. Eco Services’ leading position in the North American sulfuric acid market is well-suited to the expertise and skills of our management team members, a number of whom successfully operated in Eco Services’ markets in the past and created value for customers and shareholders alike. I am excited to work closely with the team to integrate the businesses and realize the incredible potential of the combined organization.”

Boyce said, “PQ and Eco are exceptional businesses with long-standing customer relationships and leading positions in growing end markets driven by long term macro trends. We are confident the combination of the two businesses will bring tremendous value to our customers, employees and shareholders.”

Tim Walsh, Managing Director of CCMP and head of the firm’s industrials practice, said, “Both companies offer mission critical products with industry leading service to a wide range of end markets. With complementary financial profiles and management capabilities, this is an exciting next step for both businesses and we look forward to continuing to support the combined management team to help drive the next phase of growth.”

The business combination will be effected as an equity-for-equity transaction. It will not constitute a change of control under Eco Services’ existing First Lien Term Loan due 2021 and Senior Unsecured Notes due 2022, as affiliates of CCMP will control the majority of the outstanding equity of the combined company after the transaction. It will constitute a change of control under PQ’s existing First Lien Term Loan due 2017 and Second Lien Notes due 2018. PQ will comply with all provisions of its outstanding indebtedness through the merger process. Closing of the transaction is subject to receipt of regulatory approvals, and is expected to occur in the 4th quarter of 2015.

PQ is a global leader in providing customer solutions through its expertise, innovation, and manufacture of specialty inorganic performance materials, high-end specialty catalysts, and specialty glass materials.

The company is a leader in providing megatrend solutions through products designed to enhance sustainability and safety in a variety of end-use applications. PQ serves key industries including water treatment, chemical, petroleum, construction, personal care, and food and beverage. Other key business segments include detergent and pulp & paper, transportation safety, mining, polymer additives, metal finishing, and conductive particle markets. For more information, visit:

Eco Services is the recognized leader in U.S. sulfuric acid, the largest chemical product used in the United States by volume and a fundamental input to a range of industries. Eco Services recycles spent sulfuric acid for continuous supply to the oil refining industry and manufactures high quality virgin acid products for broad industrial applications including mining, water treatment and other chemical processes. With a platform of six large-scale manufacturing plants and more than 500 employees, Eco Services supplies most of the largest refineries in the U.S. West Coast, Midwest, the Gulf of Mexico and Canada. For more information, visit: