Ecovyst completes sale of its Advanced Materials & Catalysts business to Technip Energies, strengthening finances and sharpening strategic focus.
Ecovyst Inc., a prominent supplier of virgin sulfuric acid, sulfuric acid regeneration services, and ex-situ catalyst activation solutions, has successfully finalized the divestment of its Advanced Materials & Catalysts business segment to Technip Energies. The completion of this transaction marks a significant strategic milestone for Ecovyst as it sharpens its operational focus and strengthens its financial position.
According to Ecovyst, the sale unlocks substantial value by allowing the company to monetize the intrinsic worth of the Advanced Materials & Catalysts segment. The transaction aligns with Ecovyst’s broader strategy of simplifying its portfolio while reinforcing its core businesses, which are centered on sulfur-based services critical to industrial and environmental applications.
Commenting on the development, Kurt J. Bitting, Chief Executive Officer of Ecovyst, stated that the divestment delivers meaningful benefits to shareholders. He emphasized that the monetization of the segment enables the company to significantly reduce leverage while improving overall financial flexibility. Bitting noted that the strengthened balance sheet positions Ecovyst to more effectively execute its long-term growth initiatives, while also supporting active capital returns to shareholders under its existing stock repurchase program.
As part of the transaction’s financial impact, Ecovyst expects to generate approximately $530 million in net proceeds after accounting for taxes and transaction-related expenses. These proceeds are expected to lower the company’s Net Debt Leverage Ratio to below 1.5x, representing a substantial improvement in financial metrics. Upon closing, Ecovyst applied $465 million of the proceeds toward repayment of its outstanding Term Loan, reinforcing its commitment to prudent debt management and balance sheet optimization.
Bitting also acknowledged the contributions of the Advanced Materials & Catalysts employees, expressing appreciation for their role in Ecovyst’s success. He extended best wishes to the team as they transition into Technip Energies, highlighting confidence in their continued growth under new ownership.
From the buyer’s perspective, the acquisition represents a strategic expansion of Technip Energies’ capabilities. Arnaud Pieton, Chief Executive Officer of Technip Energies, described the transaction as a key step in the company’s evolution. He explained that integrating the Advanced Materials & Catalysts business with Technip Energies’ established process technologies and engineering expertise creates a differentiated and comprehensive offering for customers.
Pieton emphasized that the combined platform enhances Technip Energies’ ability to help clients improve operational efficiency, reliability, and emissions performance across a wide range of industrial assets. He welcomed the incoming teams and expressed optimism about collaborating to deliver the next phase of growth and value creation for customers and stakeholders alike.
Several advisors supported the transaction. Lazard Frères & Co. LLC acted as financial advisor to Ecovyst, while legal counsel was provided by Ropes & Gray LLP and Babst, Calland, Clements and Zomnir, P.C.. On the Technip Energies side, Evercore served as financial advisor, with legal guidance from Gibson, Dunn & Crutcher LLP.
Overall, the completed sale positions Ecovyst for a more focused growth trajectory while enabling Technip Energies to expand its integrated solutions portfolio within advanced materials and catalysts.
