Cerberus Capital Management, L.P. (together with its affiliates, “Cerberus”) and Koch Minerals & Trading, LLC (“Koch”) today announced a partnership that has agreed to acquire the PQ Performance Chemicals business of PQ Group Holdings Inc. (“PQ”) for approximately $1.1 billion.

 

PQ Performance Chemicals is a leading global producer of sodium silicates, specialty silicas, and zeolites. The business supports a broad range of end uses, including for personal and industrial cleaning products, fuel efficient tires, surface coatings, and food and beverage products. With its industry-leading position across its three product categories, PQ Performance Chemicals serves a strong customer base of leading companies around the world.

 

“We are excited to partner with Koch, a strategic leader with invaluable insights, to invest in this industry-leading business,” said Dev Kapadia, Senior Managing Director at Cerberus. “Together with Koch, we look forward to leveraging our combined operational and industry expertise to drive PQ Performance Chemicals’ continued success as an independent company.”

 

Vance Holtzman, Senior Vice President at Koch Minerals & Trading, added, “We are looking forward to joining forces with Cerberus in this exciting partnership with the PQ Performance Chemicals team. We are eager to invest and execute on management’s growth plans, leveraging the complementary capabilities of the partnership.”

 

Al Beninati, President of PQ Performance Chemicals, commented, “This milestone is a testament to the strength of our business, talent of our team, and our bright future ahead. We are thrilled to have the support of Cerberus and Koch, who bring a wealth of strategic, financial, and industry expertise. With their partnership, we will be well-positioned to invest in our business, drive product development, and build on our customer relationships as we embark on this new chapter.”

 

The transaction, which is subject to regulatory approvals and customary closing conditions, is expected to be completed in 2021. Following completion of the transaction, the business will continue to operate under the PQ brand.

 

Jefferies, LLC served as financial advisor, and Kirkland & Ellis LLP served as legal advisor, to Cerberus and Koch. Jones Day served as legal advisor to Koch. Citi is serving as lead financial advisor with BMO Capital Markets Corp. as co-advisor, and Ropes & Gray LLP is serving as legal counsel to PQ on the transaction.