CCMP Buys Part Interest In PQ Holdings


CCMP Capital Advisors has signed an agreement to acquire 47 percent interest in Malvern-based PQ Holdings, Inc. from affiliates of The Carlyle Group.

PQ’s existing shareholders, INEOS (a global petrochemicals manufacturer), The Carlyle Group and management will continue to own approximately 53 percent of PQ.

Founded in 1831, PQ is a leading worldwide producer of specialty inorganic performance chemicals, high-end catalysts and engineered glass beads for the consumer, oil and gas, transportation safety, specialty plastics and industrial markets.

The firm has built a strong reputation for growth, product development and operational excellence and keeps its lead in the industry by continuously developing innovative solutions to meet productivity, product performance, environmental and profitability objectives.

Bloomberg News reported Carlyle acquired PQ for $1.5 billion in 2007. It also reported PQ, which had its origins as a Philadelphia soap- and candle-maker, posted revenue of $835.8 million in the nine months through September, 2013.

, said PQ has partnered with CCMP in two prior investments and that CCMP’s experience and expertise with organic chemicals will add lasting value to PQ.

According to Tim Walsh, managing director of CCMP, his firm will help drive PQ’s next phase of growth into new markets.

Andy Currie from INEOS Capital said the team will continue to build on PQ’s global leadership position providing silica-based chemistry, performance materials and specialty catalysts.

The transaction should be complete by early 2015.  The firms said debt will remain outstanding and no additional debt will be incurred.  Credit Suisse Securities (USA) LLC, Jefferies LLC, and Latham & Watkins LLP are advisors during the transaction, and CCMP was advised by Weil Gotshal & Manages LLP.

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