PPG (NYSE: PPG), a global leader in paints, coatings, and specialty materials, announced that it has reached a definitive agreement to sell its silicas products business for approximately $310 million in pre-tax proceeds to QEMETICA S.A., a Warsaw, Poland-based, privately held manufacturer of soda ash, silicates and other specialty chemicals. The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. The transaction is the result of PPG’s evaluation of strategic alternatives for the business, which was first announced on January 9, 2024. Morgan Stanley & Co. LLC acted as PPG’s financial advisor and Hogan Lovells served as its legal advisor.

PPG’s silicas products business manufactures and supplies precipitated silica products to major companies around the world as performance-enhancing additives. In 2023, the silica products business represented between 1-2% of PPG’s total net sales. The transaction includes PPG’s precipitated silicas manufacturing facilities in Lake Charles, Louisiana, and Delfzijl, The Netherlands. In addition, QEMETICA will lease silicas manufacturing and research and development operations at PPG sites in Barberton, Ohio and Monroeville, Pennsylvania, respectively. The silicas products business is led by about 400 employees.

PPG chairman and chief executive officer, Tim Knavish, said, “After conducting an extensive strategic review process, we are pleased to reach an agreement with QEMETICA and believe it is well positioned to lead the silicas products business forward. This transaction will allow us to further focus our resources on our technology-differentiated coatings and specialty products businesses to accelerate our organic growth and drive increased shareholder value creation. I want to thank the silicas products business employees for their dedication and commitment throughout the years to deliver the quality products and services that meet our customers’ evolving needs.”

QEMETICA ranks as a leading chemical manufacturer in Central Europe, boasting top-tier European production capacity in soda ash, vacuum salt, and silicates. The company's growth strategy focuses on building a global presence through strategic acquisitions and expansion of operations beyond Europe, aiming to diversify its portfolio and tap into new markets.

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Fibre2Fashion News Desk (HU)