PITTSBURGH—Poland-based Qemetica S.A. is poised to purchase PPG's silica business for about $310 million in pre-tax proceeds, according to news releases issues by both companies.
As part of the deal, expected to close in the fourth quarter of this year, Qemetica will take on two manufacturing sites, located in Lake Charles, La., and Delfzijl, Netherlands. It also agrees to lease two PPG R&D sites, one in Barberton, Ohio, and the other in Monroeville, Pa.
The business employs around 400.
For Qemetica, a privately held manufacturer of soda ash, silicates and other specialty chemicals, the acquisition was a prime opportunity to expand its offerings and deepen its expertise. It's growth strategy, after all, is rooted in global growth through acquisition.
"We were looking for a business in which we could add value, invest and grow, (one) based in the U.S. with a 100-percent or controlling stake, extending our value chain," Qemetica CEO Kamil Majczak said in a statement. "This transaction, meeting all the mentioned criteria, means that after finalizing and fully integrating the new business, we will be closer to achieving our strategic goals: to develop sources of growth other than soda ash, to achieve geographic and product diversification and to significantly expand our global footprint with revenues from new markets"
The newly acquired silica business will be Qemetica's eighth and would become the company's second-largest in terms of revenue.
Qemetica noted that all eight of its businesses operate independently, "maintaining their individual responsibility for production, sales, and logistics of their own operations." It's five-year growth strategy involves increasing the independence of each business.
For PPG, the move allows it to better focus on core areas of its business, particularly coatings and specialty products. Its silica business last year accounted for between 1-2 percent of total net sales.
"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," PPG Chairman and CEO Tim Knavish said in a statement. "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."
