Ecovyst Inc., a US-based provider of sulphuric acid regeneration and ex-situ catalyst activation services, has completed the sale of its Advanced Materials & Catalysts segment to Technip Energies. The transaction, finalised in early January, generated approximately $530mn in net proceeds after taxes and transaction costs, enabling Ecovyst to significantly reduce its net debt leverage ratio to below 1.5x.
The company used $465mn of the proceeds to repay a portion of its term loan. This decision marks a strategic refocus for Ecovyst, aiming to increase financial flexibility and support capital returns to shareholders. Ecovyst will retain its core operations in sulphuric acid services and plans to fund its future growth initiatives using the improved liquidity position.
New integrated platform for Technip Energies
For Technip Energies, this acquisition represents a targeted expansion of its technology portfolio. By integrating the Advanced Materials & Catalysts segment, the company strengthens its industrial process expertise and asset performance offering, particularly in operational efficiency and emissions performance. All teams from the acquired unit are now part of Technip Energies.
Technip Energies Chief Executive Officer Arnaud Pieton stated that the deal marks “an important milestone in the evolution of the group,” highlighting the creation of a combined platform in catalysts and advanced materials directly aligned with its process technologies.
Portfolio reshaping and financial deleveraging
On Ecovyst’s side, the divestiture is seen as a way to unlock the intrinsic value of the divested business, according to Chief Executive Officer Kurt J. Bitting. He noted that the debt reduction will support the accelerated execution of the company’s growth initiatives and authorised share repurchase programme.
Lazard Frères & Co. LLC served as Ecovyst’s financial advisor, with legal support from Ropes & Gray LLP and Babst, Calland, Clements and Zomnir, P.C. Technip Energies was advised by Evercore on financial matters and by Gibson, Dunn & Crutcher LLP on legal aspects.
