Ecovyst to sell advanced materials unit to Technip Energies for $556 million

WAYNE, Pennsylvania - Ecovyst Inc. (NYSE:ECVT) announced Thursday it has entered into a definitive agreement to sell its Advanced Materials & Catalysts segment to Technip Energies for $556 million, representing a 9.8x EBITDA multiple based on the segment’s 2024 adjusted performance.

The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions.

Ecovyst CEO Kurt J. Bitting said the company determined that "the market undervalued the segment," which prompted a strategic review leading to this sale. The company expects to receive approximately $530 million in net proceeds after taxes and transaction-related expenses.

Following a partial repayment of its Term Loan as required by existing agreements, Ecovyst projects its Net Debt Leverage Ratio will fall below 1.5x. The company has approximately $200 million remaining under its existing share repurchase authorization. With a current ratio of 2.25 and analysts predicting profitability this year, the company appears well-positioned to maintain its financial flexibility.

"This transaction marks a pivotal moment for Ecovyst," Bitting stated. "Ecovyst will be well-positioned to accelerate growth, pursue strategic opportunities, and return capital to stockholders in a disciplined and impactful way."

For Technip Energies, the acquisition brings additional capabilities in catalyst technologies and advanced materials. Technip Energies CEO Arnaud Pieton described the deal as "accretive" and "in line with our disciplined capital allocation strategy to drive long-term value creation."

Lazard, Inc. is serving as financial advisor and Ropes & Gray LLP as legal counsel to Ecovyst, while Evercore and Gibson, Dunn & Crutcher LLP are advising Technip Energies.

Ecovyst provides specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services across various industries. The company said it plans to provide additional details on its targeted leverage and capital allocation plans upon closing of the transaction.

The information in this article is based on a company press release statement.

In other recent news, Ecovyst Inc. reported its second-quarter 2025 earnings, delivering an earnings per share (EPS) of $0.12, which surpassed analyst forecasts of $0.10. However, the company’s revenue for the same period was $200.1 million, falling short of the anticipated $204.61 million. These results highlight a mixed performance for Ecovyst, with earnings exceeding expectations while revenue did not meet projections. Despite the earnings beat, investor concerns were evident due to the revenue miss. Analysts had projected higher revenue, which may have contributed to the cautious investor sentiment. The company’s recent financial performance underscores the importance of both earnings and revenue in shaping investor perceptions. No significant analyst upgrades or downgrades were reported in connection with these earnings results. These developments are part of Ecovyst’s ongoing financial narrative as it navigates market expectations.

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