The transaction represents a 9.8 times EBITDA multiple on the segment’s Adjusted EBITDA for the year ended 31 December 2024, adjusted for standalone operating costs and employee stock compensation. The closing of the transaction is anticipated in the 1Q26, pending regulatory approvals and satisfaction of customary closing conditions.
“The Advanced Materials & Catalyst segment is a high-quality business with attractive margins. We determined that the market undervalued the segment, prompting a strategic review. We believe this sale, approved by our Board, will allow us to realise its value for our stockholders," said Kurt J. Bitting, Ecovyst's CEO.
“This transaction marks a pivotal moment for Ecovyst,” added Bitting. “Net proceeds after taxes and transaction-related expenses are expected to be approximately US$530 million. Taking into consideration a partial repayment of our Term Loan and remaining liquidity, this transaction will result in an Ecovyst with a stronger balance sheet and greater financial flexibility. Ecovyst will be well-positioned to accelerate growth, pursue strategic opportunities, and with approximately US$200 million remaining under our existing share repurchase authorisation, return capital to stockholders in a disciplined and impactful way.”
Arnaud Pieton, CEO of Technip Energies, commented: “The acquisition of Advanced Materials & Catalysts is accretive for Technip Energies and is in line with our disciplined capital allocation strategy to drive long-term value creation. It brings differentiated capabilities in catalyst technologies and advanced materials, enhancing our ability to deliver high-performance, process-critical solutions to our clients. This acquisition is an important step in strengthening our technology platform, bringing a new dimension to our catalyst business and unlocking avenues for product development and market expansion. We are delighted to welcome the Advanced Materials & Catalysts team as we continue building a more integrated and technology-driven portfolio.”