PQ Corporation (PQ) - a leading global manufacturer of speciality 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, have announced the closing of a previously announced merger that bolsters PQ’s position as a world class speciality 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 US$1.2 billion senior secured term loan (consisting of a US$900 million senior secured term loan and a US$300 million Euro equivalent senior secured term loan), US$625 million in new senior secured notes, US$525 million in senior unsecured notes and a US$200 million asset-based secured revolving credit facility. The existing US$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 speciality 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.
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/05052016/eco-services-and-pq-close-merger-with-one-another-3214/