Cerberus Capital Management LP and Koch Minerals & Trading LLC have agreed to acquire PQ Group’s performance chemicals business for about $1.1 billion. PQ Performance Chemicals is a producer of sodium silicates, specialty silicas, and zeolites.
NEW YORK–(BUSINESS WIRE)–Cerberus Capital Management, L.P. (together with its affiliates, “Cerberus”) and Koch Minerals & Trading, LLC (“Koch”) today announced a partnership that has agreed to acquire the PQ Performance Chemicals business of PQ Group Holdings Inc. (NYSE: PQG) (“PQ”) for approximately $1.1 billion.
PQ Performance Chemicals is a leading global producer of sodium silicates, specialty silicas, and zeolites. The business supports a broad range of end uses, including for personal and industrial cleaning products, fuel efficient tires, surface coatings, and food and beverage products. With its industry-leading position across its three product categories, PQ Performance Chemicals serves a strong customer base of leading companies around the world.
“We are excited to partner with Koch, a strategic leader with invaluable insights, to invest in this industry-leading business,” said Dev Kapadia, Senior Managing Director at Cerberus. “Together with Koch, we look forward to leveraging our combined operational and industry expertise to drive PQ Performance Chemicals’ continued success as an independent company.”
Vance Holtzman, Senior Vice President at Koch Minerals & Trading, added, “We are looking forward to joining forces with Cerberus in this exciting partnership with the PQ Performance Chemicals team. We are eager to invest and execute on management’s growth plans, leveraging the complementary capabilities of the partnership.”
Al Beninati, President of PQ Performance Chemicals, commented, “This milestone is a testament to the strength of our business, talent of our team, and our bright future ahead. We are thrilled to have the support of Cerberus and Koch, who bring a wealth of strategic, financial, and industry expertise. With their partnership, we will be well-positioned to invest in our business, drive product development, and build on our customer relationships as we embark on this new chapter.”
The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to be completed in 2021. Following completion of the transaction, the business will continue to operate under the PQ brand.
Jefferies, LLC served as financial advisor, and Kirkland & Ellis LLP served as legal advisor, to Cerberus and Koch. Jones Day served as legal advisor to Koch. Citi is serving as lead financial advisor with BMO Capital Markets Corp. as co-advisor, and Ropes & Gray LLP is serving as legal counsel to PQ on the transaction.
Founded in 1992, Cerberus is a global leader in alternative investing with over $50 billion in assets across complementary credit, private equity, and real estate strategies. We invest across the capital structure where our integrated investment platforms and proprietary operating capabilities create an edge to improve performance and drive long-term value. Our tenured teams have experience working collaboratively across asset classes, sectors, and geographies to seek strong risk-adjusted returns for our investors. For more information about our people and platforms, visit us at www.cerberus.com.
About Koch Industries, Inc.
Based in Wichita, Kansas, Koch Industries, Inc. is one of the largest private companies in America, with estimated annual revenues as high as $115 billion, according to Forbes. It owns a diverse group of companies involved in refining, chemicals, and biofuels; forest and consumer products; fertilizers; polymers and fibers; process and pollution control systems; electronics, software and data analytics; minerals; glass; automotive components; ranching; commodity trading; and investments. Since 2003, Koch companies have invested nearly $133 billion in growth and improvements. For more news and information, visit www.KOCHind.com.
Koch Minerals & Trading, a wholly-owned subsidiary of Koch Industries, specializes in the innovative exchange and logistics of global commodity products and services, and the development of investments into profitable ventures and new platforms. It seeks investment opportunities to leverage its commercial and operating capabilities by partnering with private equity and capable management teams.
About PQ Group Holdings Inc.
PQ Group Holdings Inc. is a leading integrated and innovative global provider of specialty catalysts, chemicals and services. PQ supports customers globally through its strategically located network of manufacturing facilities. PQ believes that its products (which are predominantly inorganic), and services contribute to improving the sustainability of the environment. It has three uniquely positioned specialty businesses: Refining Services provides sulfuric acid recycling to the North American refining industry; Catalysts serves the packaging and engineering plastics and the global refining, petrochemical and emissions control industries; and Performance Chemicals supplies diverse product end uses, including personal and industrial cleaning products, fuel efficient tires, surface coatings, and food and beverage products. For more information, see our website at https://www.pqcorp.com.