Business Combination Unites Inorganic Chemicals Leaders
PQ Corporation (“PQ”), a leading global manufacturer 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, announced today the
closing of a previously announced merger that bolsters PQ’s position as
a world-class specialty inorganic chemical company.
Concurrently with the closing of the merger between PQ and Eco Services,
PQ has also refinanced its existing credit facilities by entering into a
USD$1.2 billion senior secured term loan (consisting of a USD$900
million senior secured term loan and a USD$300 million Euro equivalent
senior secured term loan), USD$625 million in new senior secured notes,
USD$525 million in senior unsecured notes, and a USD$200 million
asset-based secured revolving credit facility. The existing $200 million
of Eco Services notes will remain outstanding.
“Combining PQ and Eco Services and refinancing our credit facilities
positions the new PQ to grow and prosper well into the future,” said
George J. Biltz, President and Chief Executive Officer of the combined
company. “Moving forward, our customers will continue to see superior
product offerings and top-notch service from our dedicated team.”
Biltz also noted that the combination joins two specialty inorganic
chemical companies that have similar business models and complementary
customers. Both companies provide mission-critical products and services
to the refinery industry, with PQ supplying catalysts necessary for the
refining of crude oil and Eco Services providing sulfuric acid
regeneration services needed in the alkylation process. Biltz
anticipates a smooth integration process that is expected to yield
significant back-office savings and other synergies that will serve PQ’s
growth initiatives.
Michael R. Boyce will continue to serve as Chairman of the Board of PQ
while refining industry services veteran Paul J. Ferrall will serve as
President of the Eco Services business unit. Affiliates of CCMP Capital,
INEOS Capital, and management remain as shareholders of the combined
business.
About PQ Corporation
Founded in 1831 and headquartered in Malvern, Pa., PQ Corporation is an
integrated, leading global innovator and manufacturer of specialty
inorganic performance chemicals, high-end specialty catalysts, and
specialty glass materials. The company is comprised of four divisions:
(i) Performance Chemicals – producing sodium silicate, specialty silicas
and other high-performance chemical products for the personal care,
food, consumer cleaning, pulp & paper, electronics, mining, oil
processing and construction end-uses; (ii) Catalysts – producing silica
and specialty zeolite-based catalysts serving the high-density
polyethylene polymerization, chemical synthesis, emissions control, lube
and diesel de-waxing and refining end-uses; (iii) Specialty Glass
Materials – producing engineered glass materials serving the
transportation safety, oil & gas, polymer additive, metal finishing, and
electronic packaging end-uses; and (iv) Eco Services – recycling spent
sulfuric acid for continuous supply to the oil refining industry and
manufacturing high-quality virgin acid products for broad industrial
applications including mining, water treatment, and other chemical
processes.
Forward-Looking Statements
This press release contains forward-looking statements within the
meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements can be identified by words such as “could,”
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similar references to future periods. Forward-looking statements are
based on our current expectations and assumptions regarding our
business, the economy and other future conditions. Because
forward-looking statements relate to the future, by their nature, they
are subject to inherent uncertainties, risks and changes in
circumstances that are difficult to predict. As a result, our actual
results may differ materially from those contemplated by the
forward-looking statements. Any forward-looking statement made by us in
this press release speaks only as of the date on which it is made.
Factors or events that could cause our actual results to differ may
emerge from time to time, and it is not possible for us to predict all
of them. We undertake no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information,
future developments or otherwise, except as may be required by law.
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