Ecovyst expands with Louisiana asset acquisition

WAYNE, Pa. - Ecovyst Inc. (NYSE: ECVT), a global leader in the production of advanced materials and specialty catalysts with annual revenues of $706 million, has finalized the purchase of sulfuric acid production assets in Waggaman, Louisiana, from Cornerstone Chemical Company. The acquisition by Ecovyst’s subsidiary, Eco Services Operations Corp., was completed today, marking a significant expansion for the company. According to InvestingPro data, the company maintains a healthy financial position with a current ratio of 2.81, indicating strong liquidity to support its expansion plans.

According to Ecovyst’s CEO, Kurt J. Bitting, the integration of the Cornerstone assets is set to enhance the company’s network flexibility and supply reliability, addressing the growing demand for virgin sulfuric acid and sulfuric acid regeneration services. The move is expected to bolster Ecovyst’s capacity to meet future market needs.

Ecovyst is recognized for its strategic manufacturing network, supplying high-quality sulfuric acid to North American refiners and industrial and mining sectors. The company also offers environmental sustainability through its recycling services and advanced material production that supports the creation of high-performance plastics and sustainable chemistry solutions.

The acquisition aligns with Ecovyst’s growth strategy, aiming to extend its reach and service offerings in the sulfuric acid market. While the company’s forward-looking statements indicate optimism, they also caution stakeholders about the inherent uncertainties and risks associated with future projections.

This expansion is reported based on a press release statement, and no further details about the financial terms of the acquisition have been disclosed. Ecovyst’s stock performance and investor sentiment may reflect the strategic importance of this acquisition in the coming weeks, as the company integrates the new assets into its operations.

In other recent news, Ecovyst Inc. reported first-quarter sales of $162.2 million, falling short of the $172.9 million anticipated by BWS Financial due to lower performance in the ecoservices segment. However, Ecovyst surpassed adjusted EBITDA estimates, aided by improved pricing and a resurgence in the advanced materials segment. The company has increased its sales forecast for the full year by $30 million, despite unchanged profit metrics. BWS Financial maintained its Buy rating for Ecovyst, reiterating a $12.00 price target and suggesting a positive outlook for the company’s financial recovery.

Ecovyst’s first-quarter results were bolstered by favorable sales timing within the Zeolyst joint venture, with total sales reaching $200 million, up nearly 9%. Adjusted EBITDA for the quarter was $39 million, driven by higher volumes in the Zeolyst joint venture. The company is set to close the acquisition of Cornerstone Chemical Company’s sulfuric acid assets in the second quarter, aiming to enhance its Gulf Coast network. Ecovyst plans to allocate up to $30 million for share repurchases, reflecting confidence in its valuation and cash generation capabilities.

The company remains cautious about potential softer demand due to tariffs but sees strong demand in its regeneration services and mining sectors. Ecovyst expects its Advanced Materials and Catalysts segment to benefit from increased hydrocracking catalyst sales. The firm continues to project growth for 2025, maintaining its adjusted EBITDA guidance range of $238 million to $258 million.

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