Technip Energies Expands Capabilities with New Acquisition
Technip Energies Acquires Ecovyst's Advanced Materials & Catalysts Business
Technip Energies (PARIS: TE) has announced that it has finalized an agreement to acquire the Advanced Materials & Catalysts business from Ecovyst Inc. The purchase price set for this deal is an impressive US$556 million, and it reflects an EBITDA multiple of approximately 9.8. This acquisition shines a light on Technip Energies' strategic pursuit of growth in the catalyst sector, enriching their core offerings and technological capabilities.
Strategic Benefits of the Acquisition
Enhancing Technip's Catalyst Expertise
The transaction is set to boost Technip Energies' capabilities in catalyst technologies, pivotal for enhancing chemical reaction efficiencies across several markets, including traditional sectors such as polyethylene and hydrocracking, as well as emerging fields like sustainable fuels production.
Boosting Revenue and Cash Flow
This acquisition will have an immediate positive impact on earnings and cash flow for Technip Energies. By incorporating the Advanced Materials & Catalysts segment within its Technology, Products & Services (TPS) segment, Technip anticipates an increase in recurring revenues. Pro-forma analyses for 2024 suggest that this will enhance the TPS segment EBITDA from 39% to around 45%.
Details of the Advanced Materials & Catalysts Business
Technip Energies is set to acquire the entire Advanced Materials & Catalysts business, which includes:
- Advanced Silicas: A renowned supplier of specialty silica-based materials and catalysts for applications across plastics, chemicals, and industrial sectors.
- Zeolyst International: A joint venture with Shell Catalysts and Technologies, focusing on zeolite-based advanced materials and catalysts used in hydrocracking, sustainable fuel production, and innovative recycling methods.
Future Outlook for Technip Energies
The Advanced Materials & Catalysts business generated total revenues of US$223 million with an EBITDA margin nearing 25% in 2024. This acquisition enables Technip Energies to enhance its offerings and contribute effectively to global sustainability trends, including circular chemistry and carbon capture initiatives.
CEO Insights on the Acquisition
Arnaud Pieton, CEO of Technip Energies, remarked, “The acquisition of Advanced Materials & Catalysts is a significant step for Technip Energies, aligning with our disciplined strategies for capital allocation. This deal presents an opportunity to further strengthen our technology platform and drive innovation. We are committed to delivering high-performance, process-critical solutions to our clients, and the arrival of Advanced Materials & Catalysts positions us favorably for future growth.”
Remarks from Ecovyst's Leadership
Kurt Bitting, CEO of Ecovyst, expressed pride in their achievements with the Advanced Materials & Catalysts team and emphasized Technip Energies as the ideal partner for continued innovation and growth.
Paul Whittleston, President of Advanced Materials & Catalysts, added, “This acquisition is an exciting milestone that will allow us to scale our technologies and enhance innovation, ultimately delivering higher value to our clients.”
Transaction Overview and Next Steps
The completion of this transaction is expected by the first quarter of 2026, subject to obtaining necessary regulatory approvals and fulfilling standard closing conditions. With this acquisition, Technip Energies is on the path to achieving not just financial enhancements but also creating a broader value proposition through comprehensive customer offerings across various markets.
Frequently Asked Questions
What is the value of the acquisition?
The acquisition of Advanced Materials & Catalysts is valued at US$556 million.
How will this acquisition benefit Technip Energies?
This acquisition will enhance Technip Energies' catalyst capabilities, improve recurring revenue, and positively impact earnings and cash flow.
When is the acquisition expected to close?
The transaction is projected to close by the first quarter of 2026, pending regulatory approvals.
What businesses are included in the acquisition?
The acquisition includes Advanced Silicas and Zeolyst International.
How does this relate to Technip's longer-term strategy?
This acquisition aligns with Technip Energies' disciplined growth strategy, supporting expansion in technology and improving their competitive position in the market.
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