MALVERN, Pa.—PQ Group Holdings is selling its Performance Chemicals business, which provides products to the tire industry.
The Malvern-based company found a buyer in a partnership created by Cerberus Capital Management L.P. and Koch Minerals & Trading L.L.C. at a cost of $1.1 billion.
"We are excited by today's announcement for the sale of our Performance Chemicals business at a favorable valuation," PQ CEO Belgacem Chariag said in a statement.
The sale of the Performance Chemicals division continues the PQ's efforts to remake itself through a plan called "Simpler + Stronger" by the company.
PQ previously divested its Performance Materials business late last year in what the company called a first step.
"With this agreement to divest the Performance Chemicals business, we are accelerating the next and most critical step in our strategic transformation. Our core Refining Services and Catalysts Technologies businesses represent a unique opportunity to reposition PQ as a pure play, high growth company," Chariag said in a statement.
The deal is expected to close this year and PQ expects to provide shareholders a special dividend of between $2.50 and $3.25 per share with the proceeds. This is subject to board approval.
PQ calls itself an integrated global provider of specialty catalysts, chemicals and services.