PPG to Sell Silicas Business to QEMETICA

29 August 2024

Key highlights

PPG sells silicas business to QEMETICA for $310 million.
Transaction expected to close in Q4 2024.
Includes manufacturing sites in Lake Charles, Louisiana, and Delfzijl, Netherlands.
QEMETICA to lease operations in Barberton, Ohio, and Monroeville, Pennsylvania.

Transaction Overview

PPG has agreed to sell its silicas products business to QEMETICA S.A. for approximately $310 million in pre-tax proceeds. The deal is expected to close in the fourth quarter of 2024, pending customary closing conditions. This decision follows PPG’s strategic review of the business, initially announced on January 9, 2024. Morgan Stanley & Co. LLC served as PPG’s financial advisor, while Hogan Lovells provided legal counsel.

Business Details

PPG’s silicas products business manufactures and supplies precipitated silica products used as performance-enhancing additives. In 2023, this segment accounted for 1-2% of PPG’s total net sales. The transaction includes manufacturing facilities in Lake Charles, Louisiana, and Delfzijl, Netherlands. Additionally, QEMETICA will lease silicas manufacturing and R&D operations at PPG sites in Barberton, Ohio, and Monroeville, Pennsylvania. The business employs around 400 people.

Strategic Implications

PPG’s Chairman and CEO, Tim Knavish, stated that the sale allows PPG to focus on its core businesses in technology-differentiated coatings and specialty products, aiming to accelerate organic growth and enhance shareholder value. QEMETICA, a leading chemical manufacturer in Central Europe, plans to expand its global presence through strategic acquisitions and diversification.