PQ Group sells Performance Materials to Jordan
PQ Group Holdings has agreed to sell its Performance Materials business, known as Potters Industries and a major producer of engineered glass materials, for $650 million to mid-market private equity firm Jordan Company. The deal should close by the end of the year, subject to regulatory approvals and customary closing conditions.
The firm, which is based in Malvern, Pennsylvania, is also launching a review of strategic alternatives for the Performance Chemicals business. Under its ongoing ‘Simpler and Stronger’ strategic plan, it is focusing more on its high-growth, high-margin Catalysts and Refining Services businesses, driven by the lightweighting and clean fuel trends.
PQ plans to use the proceeds, together with a portion of existing cash balances, to reduce debt by about $460 million while also allocating up to $250 million to a planned special dividend to shareholders. This is subject to board approval and declaration This is the seventh transaction in the chemicals sector made to date by New York-based Jordan. It also owns speciality chemicals company Vantage, and Polymer Solutions Group, a maker of specialty polymers and additives, among others.