KPS Capital Partners to acquire controlling stake in Ketjen from Albemarle

NEW YORK - KPS Capital Partners announced Monday it has entered into a definitive agreement to acquire a controlling stake in Albemarle Corporation’s (NYSE:ALB) refining catalyst solutions business, Ketjen Corporation. The deal comes as Albemarle’s stock has shown strong momentum, gaining over 60% in the past six months, according to InvestingPro data, despite current profitability challenges.

Under the agreement, KPS will own approximately 51% of Ketjen, with Albemarle retaining a 49% stake. KPS will have majority board representation and operational control of the company. Albemarle will retain full ownership of Ketjen Corporation’s Performance Catalyst Solutions business. InvestingPro analysis shows Albemarle maintains a GOOD financial health score, with liquid assets exceeding short-term obligations, suggesting a strong position for this strategic move. InvestingPro subscribers can access 8 additional key insights about Albemarle’s financial position.

Ketjen manufactures advanced catalyst solutions used to process crude oil and renewable feedstocks into fuels and chemicals for various applications. Headquartered in Houston, Texas, the company employs approximately 840 people and operates two manufacturing facilities, two research centers, and two joint ventures across the Americas, Europe, and Asia.

"We will leverage KPS’ decades of global manufacturing experience to create an entrepreneurial culture centered on innovation and continuous improvement," said Raquel Vargas Palmer, Managing Partner of KPS.

Michael Simmons, President of Ketjen, expressed optimism about the partnership, noting KPS’s "exceptional track record of investing in and strengthening industrial and specialty materials businesses."

Kent Masters, Chairman and CEO of Albemarle, stated that the company’s retained stake "highlights our belief in the Company’s earnings growth and value creation potential under KPS’ direction."

The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions and approvals. Debt financing for the deal has been provided by Barclays, Jefferies, BNP Paribas, and Santander.

The announcement was made in a press release statement from KPS Capital Partners.

In other recent news, Albemarle Corporation reported its second-quarter 2025 earnings, showing a decline in net sales and adjusted EBITDA compared to the previous year. Despite facing challenges due to lower lithium prices, the company maintained its full-year outlook, emphasizing notable cost and productivity improvements. In related developments, RBC Capital raised its price target for Albemarle to $117.00, up from $80.00, while maintaining an Outperform rating. This adjustment was attributed to improving lithium pricing, particularly in North America and Asia.

Additionally, Rothschild Redburn initiated coverage on Albemarle with a Buy rating and set a price target of $135.00. The research firm pointed to Albemarle’s strong positioning to capitalize on rising lithium prices, with a focus on its spodumene assets as a key driver for earnings growth. These updates reflect a positive sentiment from analysts despite the recent earnings decline. Investors may find these insights useful as they assess Albemarle’s potential in the evolving lithium market.

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