#USA #Advanced Materials #Ecovyst #Wayne #Technip Energies

Ecovyst and Technip Energies: A Game-Changing Agreement

Ecovyst Inc., recognized as a leader in providing advanced materials and specialty catalysts, has recently reached an agreement to sell its Advanced Materials & Catalysts segment to Technip Energies for a staggering $556 million. This strategic move not only signifies an important step for Ecovyst but also sheds light on the ongoing evolution in the materials and catalysts industry.

Overview of the Transaction

On September 11, 2025, Ecovyst (NYSE: ECVT) announced this definitive agreement, marking it as a pivotal moment in its growth strategy. The agreement highlights a purchase price that reflects a 9.8x EBITDA multiple based on the segment's Adjusted EBITDA for the year ending December 31, 2024. This transaction is expected to conclude in the first quarter of 2026, pending regulatory approvals.

Kurt J. Bitting, the CEO of Ecovyst, expressed that the decision to sell the Advanced Materials & Catalysts segment stemmed from an extensive strategic review. He emphasized that this segment is valued highly and, through this sale, Ecovyst intends to unlock its full potential for shareholders. Post-transaction, the anticipated net proceeds will be around $530 million, contributing to a more robust balance sheet for Ecovyst, which will enhance its financial flexibility moving forward.

Benefits for Both Entities

Bitting articulated that the funds from this sale would be strategically allocated to repay part of their term loan, thereby improving their financial standing. Furthermore, this transaction empowers Ecovyst to focus on growth opportunities and to return capital to its shareholders diligently, aided by the remaining $200 million under its existing share repurchase authorization.

Arnaud Pieton, CEO of Technip Energies, commented on the acquisition by underscoring its long-term benefits. He stated that this acquisition aligns with their meticulous capital allocation strategy driving value. It introduces valuable capabilities in catalyst technologies, enhancing Technip Energies' capacity to deliver critical, high-performance solutions across their global client base.

Looking Ahead: Financial Projections and Future Strategy

In terms of financial leverage, after the partial repayment of Ecovyst’s Term Loan, the company anticipates a Net Debt Leverage Ratio of less than 1.5x, positioning it favorably for future endeavors. The leadership at Ecovyst plans to share further insights regarding leverage targets and capital allocation strategies as the transaction progresses.

Lazard, Inc. served as the financial advisor for Ecovyst, while Evercore did the same for Technip Energies, showcasing a well-structured navigation through this large-scale deal.

About Ecovyst and Technip Energies

Ecovyst Inc. and its subsidiaries operate as frontrunners in the production of advanced materials, specialty catalysts, as well as virgin sulfuric acid services. They are strategically situated across various manufacturing facilities that support a drive toward environmental sustainability.

Technip Energies, on the other hand, plays a significant role in global technology and engineering markets, with a strong emphasis on LNG, hydrogen production, sustainable chemistry, and CO2 management. Their commitment to bridging profitability with sustainability highlights a collaborative approach towards a lasting impact in the industry.

In summary, the partnership between Ecovyst and Technip Energies through this major acquisition heralds a transformative period for both companies, setting the groundwork for future innovations and advancements in the advanced materials and catalyst space.