PPG sells its silicas business
Pittsburgh-based PPG has reached an agreement to sell its silicas products business for approximately $310 million (in pre-tax proceeds) to QEMETICA S.A., a Poland-based manufacturer of soda ash, silicates and other specialty chemicals.
The transaction is expected to close in the fourth quarter of 2024. Morgan Stanley & Co. LLC acted as PPG’s financial advisor, and Hogan Lovells served as its legal advisor.
PPG’s silicas products business manufactures and supplies precipitated silica products to major companies around the world as performance-enhancing additives. In 2023, the silica products business represented between 1 to 2 percent of PPG’s total net sales. The transaction includes PPG’s precipitated silicas manufacturing facilities in Lake Charles, Louisiana, and Delfzijl, the Netherlands. In addition, QEMETICA will lease silicas manufacturing and research and development operations at PPG sites in Barberton, Ohio, and Monroeville, Pennsylvania, respectively. PPG's silicas products business is led by about 400 employees.
PPG CEO, Tim Knavish, said, “After conducting an extensive strategic review process, we are pleased to reach an agreement with QEMETICA and believe it is well positioned to lead the silicas products business forward. This transaction will allow us to further focus our resources on our technology-differentiated coatings and specialty products businesses to accelerate our organic growth and drive increased shareholder value creation. I want to thank the silicas products business employees for their dedication and commitment throughout the years to deliver the quality products and services that meet our customers’ evolving needs.”
Earlier this week, PPG also announced the completion of upgrades that have expanded the capacity of its Yen Phong industrial coatings plant in Bắc Ninh province, Vietnam.
