CCMP has closed its buy of a 49 percent stake in PQ. The sellers included Carlyle. Also, INEOS has increased its investment in PQ, resulting in a 51 percent stake in the company. No financial terms were disclosed. PQ is a provider of specialty chemicals, high-end catalysts and engineered glass beads for the consumer, oil and gas, transportation safety, specialty plastics and industrial sectors.
NEW YORK, NY and MALVERN, PA, December 29, 2014 — CCMP Capital Advisors, LLC (“CCMP”) today announced that affiliates of CCMP have successfully completed the acquisition of an approximate 49% interest in PQ Holdings, Inc. (“PQ”) from affiliates of The Carlyle Group (“Carlyle”) and management. Existing shareholder INEOS also acquired an additional interest in PQ from Carlyle and management resulting in an aggregate ownership of approximately 51% for INEOS and management. CCMP previously partnered with PQ’s management team, led by CEO Mike Boyce, in a successful investment in the company in 2005.
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. Since its founding in 1831, 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.
Boyce said, “I’m thrilled to partner with Tim Walsh and the CCMP team once again. Having worked together previously on two chemicals companies, I am confident that with CCMP’s extensive experience, along with INEOS’s expertise, PQ is well-positioned to continue to grow and create tremendous strategic value for its customers and stakeholders. We are all eager to achieve the next phase of growth and build on PQ’s international leadership and operational excellence.”
Tim Walsh, Managing Director at CCMP and head of the firm’s industrial investment activities added, “This is an exciting partnership for CCMP and we look forward to working with PQ’s talented management team and INEOS to support the company’s advancements in inorganic chemicals, catalysts and engineered glass materials. We believe PQ is poised to capitalize on the many promising growth opportunities that lie ahead.”
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.”
For purposes of the term loans due August 2017 and second lien notes due May 2018, this transaction does not constitute a Change of Control and such debt remains outstanding. No additional debt has been incurred by the company in connection with the transaction. Credit Suisse Securities (USA) LLC and Jefferies LLC served as financial advisors to the company on the transaction, and Latham & Watkins LLP served as legal advisor. CCMP was advised by Weil Gotshal & Manages LLP.
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, Eco Services, The Hillman Group, Infogroup, Jamieson Laboratories, Jetro Cash & Carry, LHP Hospital Group, Milacron, Newark Energy, Ollie’s Bargain Outlet and Pure Gym.