PQ Group Holdings Inc said on Monday it has agreed to sell its performance chemicals business, which makes cleaning and whitening agents for toothpaste and surface coatings, to a partnership formed by Cerberus Capital Management, L.P. and Koch Minerals & Trading LLC for a deal valued at $1.1 billion.
PQ Group, which completed the sale of its performance materials business last year, will focus on its core refining services and catalysts technologies businesses following the divestitures.
The company, once the deal is closed, expects to use the proceeds to issue a special dividend of $2.50 to $3.25 per share for shareholders. The deal is expected to result in a debt reduction of $450 million to $550 million.
Last week, the chemical firm agreed to buy Chem32, a supplier of catalyst pre-activation services used in renewable fuels, for $44 million to boost its refining services business.
Citi is serving as lead financial advisor with BMO Capital Markets Corp. as co-advisor.
Source: Reuters.com