Ecovyst Announces Agreement to Sell its Advanced Materials & Catalyst Segment to Technip Energies
Ecovyst (NYSE:ECVT) has entered into a definitive agreement to sell its Advanced Materials & Catalysts segment to Technip Energies for $556 million. The transaction, representing a 9.8x EBITDA multiple, is expected to close in Q1 2026.
The sale is anticipated to generate net proceeds of approximately $530 million after taxes and expenses. Following a partial Term Loan repayment, Ecovyst expects to achieve a Net Debt Leverage Ratio below 1.5x. The company plans to use the remaining funds to accelerate growth, pursue strategic opportunities, and continue its share repurchase program, with $200 million remaining under the existing authorization.
Ecovyst (NYSE:ECVT) ha raggiunto un accordo definitivo per cedere il proprio segmento Advanced Materials & Catalysts a Technip Energies per 556 milioni di dollari. L'operazione, che corrisponde a un multiplo dell'EBITDA di 9,8x, dovrebbe concludersi nel primo trimestre del 2026.
La vendita dovrebbe generare proventi netti di circa 530 milioni di dollari al netto di tasse e spese. Dopo un rimborso parziale del Term Loan, Ecovyst prevede di portare il rapporto di indebitamento netto sotto 1,5x. Il restante capitale sarà impiegato per accelerare la crescita, valutare opportunità strategiche e proseguire il programma di riacquisto di azioni, con 200 milioni di dollari ancora disponibili nell'autorizzazione vigente.
Ecovyst (NYSE:ECVT) ha firmado un acuerdo definitivo para vender su segmento Advanced Materials & Catalysts a Technip Energies por 556 millones de dólares. La transacción, equivalente a un múltiplo de EBITDA de 9,8x, se espera que se cierre en el primer trimestre de 2026.
Se anticipa que la venta generará ingresos netos de aproximadamente 530 millones de dólares después de impuestos y gastos. Tras un pago parcial del Term Loan, Ecovyst prevé situar la ratio de apalancamiento neto por debajo de 1,5x. Los fondos restantes se destinarán a acelerar el crecimiento, aprovechar oportunidades estratégicas y continuar con el programa de recompra de acciones, con 200 millones de dólares disponibles bajo la autorización vigente.
Ecovyst (NYSE:ECVT)는 자사의 Advanced Materials & Catalysts 부문을 Technip Energies에 5억5,600만 달러에 매각하는 확정 계약을 체결했습니다. 이번 거래는 EBITDA 기준 9.8배에 해당하며 2026년 1분기 마감을 예상하고 있습니다.
매각으로 세금 및 비용 차감 후 약 5억3,000만 달러의 순수익이 발생할 것으로 보입니다. 일부 기간부 대출(Term Loan) 상환 후 Ecovyst는 순부채 레버리지 비율을 1.5배 미만으로 낮출 것으로 예상합니다. 남은 자금은 성장 가속화, 전략적 기회 추구 및 자사주 매입 프로그램 지속에 사용될 예정이며, 현 승인 하에 2억 달러가 남아 있습니다.
Ecovyst (NYSE:ECVT) a conclu un accord définitif pour céder sa division Advanced Materials & Catalysts à Technip Energies pour 556 millions de dollars. La transaction, correspondant à un multiple de 9,8x de l'EBITDA, devrait être finalisée au premier trimestre 2026.
La cession devrait générer des produits nets d'environ 530 millions de dollars après impôts et frais. Après un remboursement partiel du prêt à terme, Ecovyst s'attend à ramener son ratio d'endettement net en dessous de 1,5x. Les fonds restants seront utilisés pour accélérer la croissance, saisir des opportunités stratégiques et poursuivre le programme de rachat d'actions, avec 200 millions de dollars restants dans l'autorisation actuelle.
Ecovyst (NYSE:ECVT) hat eine endgültige Vereinbarung über den Verkauf seines Advanced Materials & Catalysts-Geschäfts an Technip Energies für 556 Millionen US-Dollar geschlossen. Die Transaktion entspricht einem 9,8-fachen EBITDA-Multiplikator und soll im ersten Quartal 2026 abgeschlossen werden.
Der Verkauf dürfte nach Steuern und Kosten rund 530 Millionen US-Dollar an Nettomitteln einbringen. Nach einer teilweisen Rückzahlung des Term Loans erwartet Ecovyst eine Nettoverschuldungsquote unter 1,5x. Die verbleibenden Mittel sollen eingesetzt werden, um das Wachstum zu beschleunigen, strategische Chancen zu verfolgen und das Aktienrückkaufprogramm fortzusetzen; unter der bestehenden Genehmigung stehen noch 200 Millionen US-Dollar zur Verfügung.
- Sale price of $556 million represents an attractive 9.8x EBITDA multiple
- Expected net proceeds of $530 million to strengthen balance sheet
- Projected Net Debt Leverage Ratio to decrease below 1.5x
- $200 million remaining in share repurchase authorization for stockholder returns
- Divestment of high-margin business segment with attractive margins
- Transaction subject to regulatory approvals and closing conditions
- Extended closing timeline (Q1 2026) introduces execution risk
Insights
Ecovyst's $556M divestiture strengthens balance sheet, unlocks shareholder value, and repositions company with significant financial flexibility at attractive valuation.
Ecovyst's
The transaction's financial implications are significant. After taxes and expenses, Ecovyst expects to net approximately
The deal creates three distinct avenues for value creation: First, the immediate monetization of an undervalued asset at a premium valuation; second, enhanced financial flexibility through significant debt reduction; and third, potential shareholder returns through the company's
For Technip Energies, the acquisition is described as accretive and strategically aligned with its technology-driven portfolio expansion. The integration of Ecovyst's catalyst technologies and advanced materials capabilities should enhance Technip's ability to deliver process-critical solutions to clients, potentially creating synergies through vertical integration.
With the transaction expected to close in Q1 2026 pending regulatory approvals, investors should monitor how Ecovyst articulates its post-divestiture strategy and capital allocation plans, which management has indicated will be detailed upon closing.
"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 realize 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
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."
After partial repayment of the Company's Term Loan, as required by the Term Loan agreement, the Company expects a projected Net Debt Leverage Ratio of below 1.5x. The Company plans to provide additional details on its targeted leverage and its capital allocation plans upon closing of the transaction.
Lazard, Inc. is serving as financial advisor, and Ropes & Gray LLP is serving as legal counsel to Ecovyst. Evercore is serving as financial advisor, and
About Ecovyst
Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products and services contribute to improving the sustainability of the environment.
We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides high quality and high strength virgin sulfuric acid for industrial and mining applications. Ecoservices also provides chemical waste handling and treatment services, as well as ex-situ catalyst activation services for the refining and petrochemical industry. Advanced Materials & Catalysts, through its Advanced Silicas business, provides finished silica catalysts, catalyst supports and functionalized silicas necessary to produce high performing plastics and to enable sustainable chemistry, and through its Zeolyst Joint Venture, innovates and supplies specialty zeolites used in catalysts that support the production of sustainable fuels, remove nitrogen oxides from diesel engine emissions and that are broadly applied in refining and petrochemical process. For more information, see our website at https://www.ecovyst.com.
About Technip Energies
Technip Energies is a global technology and engineering company. With leadership positions in LNG, hydrogen, ethylene, sustainable chemistry, and CO2 management, Technip Energies is contributing to the development of critical markets such as energy, energy derivatives, decarbonization, and circularity. Its complementary business segments, Technology, Products and Services (TPS) and Project Delivery, turn innovation into scalable and industrial reality. Through collaboration and excellence in execution, its 17,000+ employees across 34 countries are fully committed to bridging prosperity with sustainability for a world designed to last. Technip Energies generated revenues of
Presentation of Non-GAAP Financial Measures
In addition to the results provided in accordance with
In reliance upon the unreasonable efforts exemption provided under Item 10(e)(1)(i)(B) of Regulation S-K, the Company is not able to provide a reconciliation of Net Debt Leverage Ratio to the corresponding GAAP measures without unreasonable effort because of the inherent difficulty in forecasting and quantifying certain amounts necessary for such a reconciliation such as certain cash and non-cash items that are included in net income and net cash provided by operating activities as well as the related tax impacts of these items, due to the uncertainty and variability of the nature and amount of these future charges and costs. Because this information is uncertain, the Company is unable to address the probable significance of the unavailable information, which could be material to future results.
Note on Forward-Looking Statements
Some of the information contained in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "projects," "aims" 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, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Examples of forward-looking statements include, but are not limited to, the anticipated benefits and timing of the closing of the transaction, expected net proceeds and the intended use of proceeds from the transaction including the debt reduction, and our anticipated financial position following consummation of the transaction, including projected Net Debt Leverage Ratio. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: the possibility that the conditions to the closing of the transaction are not satisfied, including the risk that required regulatory approvals are not obtained, on a timely basis or at all; the occurrence of any event, change or other circumstance that could give rise to a right to terminate the transaction; unexpected costs, liabilities or delays in connection with the transaction; legal proceedings initiated in connection with the transaction; an expected material loss related to the transaction to be reported in discontinued operations in the Company's financial statements; regional, national or global political, economic, business, competitive, market and regulatory conditions, including the enactment, schedule and impact of tariffs and trade disputes; currency exchange rates; the effects of inflation; and other factors, including those described in the sections titled "Risk Factors" and "Management's Discussion & Analysis of Financial Condition and Results of Operations" in our filings with the SEC, which are available on the SEC's website at www.sec.gov. These forward-looking statements speak only as of the date of this release. 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 update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.
For more information:
Gene Shiels – Director of Investor Relations
(484) 617 1225
gene.shiels@ecovyst.com
1 Based on Adjusted EBITDA for the Advanced Materials & Catalysts segment for the year ended December 31, 2024 of
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SOURCE Ecovyst Inc.
FAQ
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