Technip Energies to acquire Ecovyst’s advanced materials, catalysts business

Photo: Technip Energies

Technip Energies announced Sept. 11 that it has entered into a definitive agreement to acquire the advanced materials and catalysts business from Ecovyst Inc. for a purchase price of $556 million, representing an EBITDA multiple of approximately 9.8.

According to Technip Energies, this transaction expands its catalyst capabilities and technology offering; increases recurring revenues for its technology, products and services (TPS) segment; and is immediately accretive to earnings and cash flow.

The strategic transaction strengthens Technip Energies’ portfolio by broadening its capabilities in advanced catalysts and process technologies.

At the core of many processing technologies, catalysts are materials that accelerate chemical reactions and improve process efficiency with applications in traditional markets such as polyethylene or hydrocracking and growth areas, including sustainable-fuels production. 

“The acquisition supports Technip Energies’ strategy for disciplined growth of its TPS business segment and drives long-term value creation,” the company stated. “By integrating advanced materials and catalysts, Technip Energies will benefit from increased recurring revenues tied to customer operating expenditures and improved long-term revenue visibility. On a pro-forma basis for 2024, advanced materials and catalysts increases TPS’s contribution to segment EBITDA from 39 percent to approximately 45 percent.” 

Under the terms of the agreement, Technip Energies will acquire the entire advanced materials and catalysts business, comprising:

• Advanced Silicas—a manufacturer and supplier of specialty silica-based advanced materials and catalysts for plastics, chemicals and industrial applications.

• Zeolyst International—a 50/50 joint venture with Shell Catalysts & Technologies, which is a leading supplier of custom zeolite-based advanced materials and catalysts used in hydrocracking, sustainable fuels and custom-catalyst applications such as plastics recycling.

With a total revenue of $223 million and an EBITDA margin of around 25 percent for 2024, advanced materials and catalysts brings more than 40 years of expertise in the chemicals and downstream sectors, according to Technip Energies.

It has three manufacturing facilities in the U.S. and Europe and 330 employees.

The transaction is anticipated to close by the first quarter of next year, pending customary regulatory approvals and closing conditions.

Complementary technologies of the advanced materials and catalysts business will enhance Technip Energies’ development of integrated technology and catalysts solutions, both in established and fast-growing applications such as circular chemistry, carbon capture and sustainable fuels, Technip Energies stated.

Technip Energies said the benefits are five-fold:

• Capability expansion in catalysts value chain—establishing a scalable catalysts platform built on high-value silicas and zeolites supporting the development of Technip Energies’ process technologies.

• Leading presence in attractive growth markets—securing leading positions in markets with long-term visibility (e.g., polyethylene and hydrocracking), while also unlocking promising growth avenues for advanced materials and catalysts’ advanced materials and catalyst portfolio in emerging end uses such as sustainable aviation fuel (SAF), biocatalysis and advanced recycling.

• Enhanced R&D capabilities—bringing world-leading expertise in catalyst design and materials science complementary to Technip Energies’ process-technologies laboratories.

• Broader customer offering and value proposition—providing integrated solutions across the full asset lifecycle to drive measurable improvements in process efficiency, reliability and emissions performance for a wider range of clients.

• Accretive to Technip Energies’ financial profile with identified value creation levers—providing immediate earnings and cash flow accretion, improved quality of earnings and clear synergy opportunities.

“The acquisition of advanced materials and catalysts is accretive for Technip Energies and is in line with our disciplined capital allocation strategy to drive long-term value creation,” said Arnaud Pieton, CEO of Technip Energies. “It brings differentiated capabilities in catalyst technologies and advanced materials, enhancing our ability to deliver high-performance, process-critical solutions to our clients. This acquisition is an important step in strengthening our technology platform, bringing a new dimension to our catalyst business and unlocking avenues for product development and market expansion. We are delighted to welcome the advanced materials and catalysts team as we continue building a more integrated and technology-driven portfolio.”

Kurt Bitting, CEO of Ecovyst, added, “We are proud of what advanced materials and catalysts has achieved as part of Ecovyst. Technip Energies is the ideal long-term partner to further unlock advanced materials and catalysts’ innovation potential and ensure continuity for both customers and employees. We are confident that [the business] will continue to thrive as part of Technip Energies.”

Paul Whittleston, President of the advanced materials and catalysts business, said, “This is an exciting milestone. Over the years, we have built a business defined by technical rigor, trusted customer relationships and impact across critical industrial applications. Joining Technip Energies opens up powerful new opportunities to scale our technologies, accelerate innovation and deliver greater value for our clients. We are thrilled to join a global leader that shares our vision and commitment to a more sustainable future.”