Technip Energies finalises $556 million purchase of Ecovyst’s advanced materials

Technip Energies has finalized its acquisition of Ecovyst’s Advanced Materials & Catalysts (AM&C) division, enhancing its platform in specialty catalysts and advanced materials. The company states this move will strengthen its capabilities in advanced catalysts and foster growth in sustainable fuels, circular chemistry, and carbon capture.

Source: Pulse2

Post-acquisition, AM&C will maintain its operations under the current leadership team, bolstered by dedicated R&D, manufacturing, and commercial teams spread across three facilities in the U.S. and Europe. As part of this transaction, Technip Energies will welcome 330 new employees.

Closing this transaction is an important milestone in the evolution of Technip Energies. With Advanced Materials & Catalysts, we are combining a differentiated catalysts and advanced materials platform with our process technologies and engineering expertise, creating an integrated offering that helps our customers to improve efficiency, reliability and emissions performance across their assets. Advanced Materials & Catalysts’ strong recurring revenue base, attractive margins and long-standing customer relationships are fully aligned with our disciplined capital allocation strategy to drive long-term value creation and to grow the TPS segment. We are very happy to welcome Advanced Materials & Catalysts teams and look forward to working together to deliver the next phase of growth for our customers and stakeholders.

^{Arnaud Pieton, CEO, Technip Energies}

The acquisition encompasses Advanced Silicas, which provides specialty silica-based materials and catalysts, and Zeolyst International – a joint venture with Shell Catalysts & Technologies that specializes in custom zeolite-based materials and catalysts. These materials are used in applications such as hydrocracking, sustainable fuels, and advanced recycling.

Technip Energies highlights that AM&C brings over 40 years of established expertise and is anticipated to positively impact earnings and cash flow immediately. The company envisions merging AM&C’s catalysts and materials platform with its own process technologies and engineering skills, creating a more cohesive offering designed to enhance customer efficiency, reliability, and emissions performance.

As a leading provider of technologies that are highly-valued by the energy industry, we believe Technip Energies provides the scale and technology development expertise that will further enhance product development and market reach for the Advanced Materials & Catalysts business. We want to thank our Advanced Materials & Catalysts colleagues for their dedication and contributions over their tenure with Ecovyst, and we wish them continued success in the future as part of the Technip Energies organization.”

^{Kurt Bitting, CEO, Ecovyst}

For Ecovyst, this sale marks a significant strategic shift in its portfolio. The company has indicated it expects net proceeds after taxes and transaction costs to be around $530 million and has revealed that it intends to use $465 million of these proceeds at closing to reduce its term loan, aiming for a net debt leverage ratio below 1.5x.