#USA #Ecovyst #Sulfuric Acid #Cornerstone Chemical #Waggaman, Louisiana

Ecovyst Expands Operations with Cornerstone Chemical Acquisition

In a strategic move to bolster its market presence, Ecovyst Inc. has reached an agreement to acquire the sulfuric acid production assets from Cornerstone Chemical Company, located in Waggaman, Louisiana. This acquisition is set to enhance Ecovyst’s capabilities in serving both regeneration and virgin sulfuric acid customers, alongside providing necessary flexibility within the company's existing operations in the Gulf Coast area.

The deal, which relies on cash resources already at Ecovyst's disposal, is expected to close in the second quarter of 2025, pending the usual closing conditions. George L. Vann, President of Ecoservices, emphasized the significance of this deal, stating, "This acquisition represents a unique opportunity for us to strengthen our facility network and further support our customers' future growth needs in a cost-efficient manner."

Strategic Significance of the Acquisition

The acquisition is particularly strategic due to its proximity to Ecovyst’s Baton Rouge site, which aligns seamlessly with their broader Gulf Coast operations. By integrating Cornerstone's assets, Ecovyst not only complements its current operational footprint but also enhances the resilience of its entire plant network.

Kurt J. Bitting, the Chief Executive Officer of Ecovyst, remarked on the financials of the deal, clarifying that the assets will be procured at a price below replacement value. This aligns with Ecovyst’s initiatives aimed at executing high-return organic growth strategies and targeting valuable bolt-on investments within Ecoservices. He noted the favorable transaction multiples compared to Ecovyst's current market valuation, taking into account the anticipated pro forma EBITDA once the integration is complete.

An Overview of Ecovyst and Its Mission

Ecovyst Inc. is recognized as an innovative leader in providing advanced materials, specialty catalysts, and sulfuric acid-related services. Their operations extend globally through a network of strategically situated manufacturing sites. Ecovyst’s commitment to enhancing environmental sustainability is reflected in the services they offer, which include high-quality virgin sulfuric acid and sulfuric acid regeneration services specifically tailored for the North American refining industry.

The company operates two distinct specialty sectors. First, Ecoservices is dedicated to sulfuric acid recycling, which is crucial for the production of alkylate, while also supplying robust virgin sulfuric acid for a variety of industrial and mining applications. The company further offers chemical waste handling and treatment services, along with ex-situ catalyst activation designed for refining and petrochemical entities.

The second specialty business line involves Advanced Materials and Catalysts, which provides essential finished silica catalysts and supports the production processes necessitated for high-performing plastics. Furthermore, through its Zeolyst Joint Venture, Ecovyst innovates and supplies specialty zeolites which play roles in sustainable fuel production, nitrogen oxide removal from diesel emissions, and various refining applications.

Looking Ahead

The acquisition of Cornerstone’s sulfuric acid assets is viewed not only as a pivotal growth opportunity for Ecovyst but also as a strong commitment to fulfilling the future needs of its customer base. As the company prepares to embark on this new chapter, it aims to effectively integrate the newly acquired assets, sustain operational excellence, and maximize value creation for its shareholders.

In conclusion, Ecovyst's latest acquisition is a testament to its forward-thinking strategy and a significant milestone in its journey toward operational expansion and enhanced customer service within the chemical industry. Stakeholders and customers alike can look forward to the benefits this strategic acquisition will bring as Ecovyst continues on its path of innovation and growth.