CCMP Capital Advisors and PQ Holdings, a specialty chemical company, have signed an agreement under which CCMP will acquire an approximate 47% interest in PQ from The Carlyle Group. PQ was acquired by an investor group led by The Carlyle Group in 2007. PQ’s existing shareholders – INEOS, Carlyle and management – will continue to own approximately 53% of PQ.
PQ was previously owned by CCMP (then operating as J.P. Morgan Partners) from 2005 to 2007, when it was sold to The Carlyle Group. “We are excited to partner with CCMP again, a group I have known for over 20 years and partnered with in two prior investments. I believe their extensive experience and expertise in inorganic chemicals will add lasting value to PQ,” said Mike Boyce, CEO of PQ.
PQ is a producer of specialty inorganic performance chemicals, catalysts and engineered glass beads for the consumer, oil & gas, transportation safety, specialty plastics and industrial markets. PQ was founded in 1831 and changed its name from Philadelphia Quartz Company to PQ Corporation in 1978. PQ is headquartered near Philadelphia in Malvern, PA (www.pqcorp.com).
PQ is comprised of three divisions: (i) Performance Chemicals – producing sodium silicate, specialty silicas and other high-performance chemical products for the personal care, food, consumer cleaning, pulp & paper, electronics, mining, oil processing and construction end-uses; (ii) Catalysts – producing silica and specialty zeolite-based catalysts serving the high density polyethylene polymerization, chemical synthesis, emissions control, lube and diesel de-waxing and refining end-uses; and (iii) Specialty Glass Materials – producing engineered glass materials serving the transportation safety, oil & gas, polymer additive, metal finishing and electronic packaging end-uses.
“CEO Mike Boyce and his team of talented managers have established PQ’s products as critical components in customers’ manufacturing processes in a large and diverse set of end markets,” said Tim Walsh, Managing Director of CCMP and head of the firm’s industrials practice. “We look forward to working with them again to help drive the company’s next phase of growth as it expands its product set into new and existing end markets and geographies.”
CCMP specializes in making buyout and growth equity investments in the United States and Europe. The firm typically invests $100 million to $500 million of equity per transaction in companies with enterprise values of $500 million to $2 billion. Sectors of interest include consumer/retail, industrial, healthcare, and energy. CCMP is headquartered in New York (www.ccmpcapital.com).
“We are grateful to Mike and his team for several years of partnership. Along with INEOS and the management team, Carlyle has invested in and seen strong growth at PQ during the period of our ownership. We wish Mike, INEOS and CCMP continued success,” said Andrew Marino, Managing Director at Carlyle.
The Carlyle Group (NASDAQ: CG) invests in buyouts, growth capital, real estate and leveraged finance in Africa, Asia, Australia, Europe, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The firm employs approximately 1,600 people in 38 offices across six continents and is based in Washington, DC (www.carlyle.com).
PQ is being advised by Credit Suisse Securities, Jefferies, and Latham & Watkins on the transaction. CCMP was advised by Weil Gotshal & Manages.
Completion of the transaction is expected from late 2014 to early 2015.
2014 PEPD • Private Equity’s Leading News Magazine • 9-12-14