The Carlyle Group And INEOS Agree To Combine PQ Corporation And INEOS Silicas
Washington, DC - Global private equity firm The Carlyle Group announced recently that PQ Corporation, the specialty chemical company it acquired in July of 2007, has agreed to combine with INEOS Silicas, a division of INEOS, the global manufacturer of petrochemicals, specialty chemicals and oil products. PQ Corporation and INEOS Silicas will combine to form a global producer of specialty inorganic chemicals, catalysts and engineered glass products with annual sales revenues in excess of US$1 billion. Carlyle will own an approximate 60% share of the new combined company, while INEOS will hold approximately 40%. Terms of the transaction were not disclosed.
Andrew Marino, Principal of The Carlyle Group, said, "This transaction represents the combination of two successful and complementary companies to create a business with increased capabilities and market coverage to better serve our customers in the inorganic specialty chemicals space. We look forward to working closely with our new partners at INEOS to maximize the growth opportunities of the new company."
Andy Currie, Director of INEOS Capital, who will serve as a Director on the Board of the new company, said, "This is a well-timed next step in the development of INEOS Silicas. Operating under single ownership presents both businesses and their customers with new opportunities. PQ brings with it unique benefits in terms of its people and its technology, incorporating some of the world's leading product and process innovation."
The combined company will be called PQ Corporation. Mike Boyce, Chairman and Chief Executive Officer of PQ, will serve in that same capacity following the close of the transaction. "Our strategy at PQ has and will continue to be profitable growth of our business," Boyce said. "A combination with INEOS Silicas offers an immediate way to achieve an enhanced global presence, which will result in a greater ability to meet and exceed our customers' expectations. Additionally, the size and growth profile of this new company will allow for better access to capital for future investments in growth opportunities."
SOURCE: The Carlyle Group