PQ Corporation Announces Closing of Merger With Eco Services Operations LLC
By Business Wire News
By Business Wire News
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.
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,” “may,” “might,” “will,” “likely,” “anticipates,” “intends,” “plans,” “seeks,” “believes,” “estimates,” “expects,” “continues,” “projects” and 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.
For PQ Corporation
J. Grande Communications Inc.
Joe Grande, +413-684-2463