Ecovyst Announces Agreement to Acquire Sulfuric Acid Assets from Cornerstone Chemical Company
Ecovyst Inc. (NYSE: ECVT) has announced an agreement to acquire the sulfuric acid production assets from Cornerstone Chemical Company in Waggaman, Louisiana. The transaction is expected to close in Q2 2025 and will be funded with cash on hand.
The strategic acquisition aims to expand Ecoservices' capacity for regeneration and virgin sulfuric acid customers while enhancing operational flexibility in the Gulf Coast network. The Waggaman plant's location near Ecovyst's Baton Rouge site is expected to strengthen the company's regional presence.
The assets are being acquired below replacement value and at a favorable transaction multiple compared to Ecovyst's current trading multiple, considering expected post-integration EBITDA. This aligns with the company's strategy of pursuing high-return organic growth initiatives and strategic bolt-on investments in Ecoservices.
Ecovyst Inc. (NYSE: ECVT) ha annunciato un accordo per acquisire gli impianti di produzione di acido solforico dalla Cornerstone Chemical Company a Waggaman, Louisiana. Si prevede che la transazione si chiuda nel secondo trimestre del 2025 e sarà finanziata con liquidità disponibile.
L'acquisizione strategica mira a espandere la capacità di Ecoservices per i clienti di acido solforico rigenerato e vergine, migliorando nel contempo la flessibilità operativa nella rete del Golfo del Messico. La posizione dell'impianto di Waggaman vicino al sito di Ecovyst a Baton Rouge dovrebbe rafforzare la presenza regionale dell'azienda.
Gli asset vengono acquisiti sotto il valore di sostituzione e a un multiplo di transazione favorevole rispetto al multiplo di trading attuale di Ecovyst, considerando l'EBITDA previsto post-integrazione. Questo si allinea con la strategia dell'azienda di perseguire iniziative di crescita organica ad alto rendimento e investimenti strategici in Ecoservices.
Ecovyst Inc. (NYSE: ECVT) ha anunciado un acuerdo para adquirir los activos de producción de ácido sulfúrico de Cornerstone Chemical Company en Waggaman, Luisiana. Se espera que la transacción se cierre en el segundo trimestre de 2025 y se financiará con efectivo disponible.
La adquisición estratégica tiene como objetivo expandir la capacidad de Ecoservices para clientes de ácido sulfúrico regenerado y virgen, al tiempo que mejora la flexibilidad operativa en la red de la Costa del Golfo. Se espera que la ubicación de la planta de Waggaman, cerca del sitio de Ecovyst en Baton Rouge, fortalezca la presencia regional de la empresa.
Los activos se adquieren por debajo del valor de reemplazo y a un múltiplo de transacción favorable en comparación con el múltiplo de negociación actual de Ecovyst, considerando el EBITDA esperado después de la integración. Esto se alinea con la estrategia de la empresa de buscar iniciativas de crecimiento orgánico de alto rendimiento e inversiones estratégicas en Ecoservices.
에코비스티 주식회사 (NYSE: ECVT)는 루이지애나주 와가만에 위치한 코너스톤 케미컬 컴퍼니의 황산 생산 자산을 인수하는 계약을 발표했습니다. 이번 거래는 2025년 2분기에 마무리될 것으로 예상되며, 보유 현금으로 자금을 조달할 예정입니다.
이번 전략적 인수는 에코서비스의 용량을 확장하고, 재생 및 원료 황산 고객을 위한 운영 유연성을 향상시키는 것을 목표로 하고 있습니다. 와가만 공장의 위치는 에코비스티의 배턴루지 사이트와 가까워 회사의 지역적 존재감을 강화할 것으로 기대됩니다.
자산은 대체 가치 이하로 인수되며, 에코비스티의 현재 거래 배수에 비해 유리한 거래 배수로 진행됩니다. 이는 회사의 고수익 유기 성장 이니셔티브 및 에코서비스에 대한 전략적 부가 투자를 추구하는 전략과 일치합니다.
Ecovyst Inc. (NYSE: ECVT) a annoncé un accord pour acquérir les actifs de production d'acide sulfurique de la Cornerstone Chemical Company à Waggaman, en Louisiane. La transaction devrait se clôturer au deuxième trimestre de 2025 et sera financée avec des liquidités disponibles.
Cette acquisition stratégique vise à étendre la capacité d'Ecoservices pour les clients d'acide sulfurique régénéré et vierge, tout en améliorant la flexibilité opérationnelle dans le réseau du Golfe du Mexique. La localisation de l'usine de Waggaman, près du site d'Ecovyst à Baton Rouge, devrait renforcer la présence régionale de l'entreprise.
Les actifs sont acquis en dessous de la valeur de remplacement et à un multiple de transaction favorable par rapport au multiple de négociation actuel d'Ecovyst, en tenant compte de l'EBITDA prévu après intégration. Cela s'aligne avec la stratégie de l'entreprise de poursuivre des initiatives de croissance organique à fort rendement et des investissements stratégiques dans Ecoservices.
Ecovyst Inc. (NYSE: ECVT) hat eine Vereinbarung zur Übernahme der Produktionsanlagen für Schwefelsäure von der Cornerstone Chemical Company in Waggaman, Louisiana, bekannt gegeben. Der Abschluss der Transaktion wird für das zweite Quartal 2025 erwartet und wird mit vorhandenen liquiden Mitteln finanziert.
Die strategische Übernahme zielt darauf ab, die Kapazität von Ecoservices zu erweitern für Kunden von regenerierter und virgin Schwefelsäure, während die operative Flexibilität im Gulf-Coast-Netzwerk verbessert wird. Die Lage des Waggaman-Werks in der Nähe des Standorts von Ecovyst in Baton Rouge wird voraussichtlich die regionale Präsenz des Unternehmens stärken.
Die Vermögenswerte werden unter dem Wiederbeschaffungswert und zu einem günstigen Transaktionsmultiplikator im Vergleich zum aktuellen Handelsmultiplikator von Ecovyst erworben, wobei das erwartete EBITDA nach der Integration berücksichtigt wird. Dies steht im Einklang mit der Strategie des Unternehmens, hochrentierliche organische Wachstumsinitiativen und strategische Zukäufe in Ecoservices zu verfolgen.
- Assets acquired below replacement value
- Favorable transaction multiple compared to current trading multiple
- Strategic expansion of production capacity in Gulf Coast region
- Operational synergies with existing Baton Rouge facility
- Cash-funded acquisition indicating strong liquidity position
- None.
Insights
Ecovyst's acquisition of Cornerstone Chemical's sulfuric acid assets represents a strategically sound expansion of its production capabilities in the Gulf Coast region. The deal offers three key advantages worth highlighting:
First, the financial structure appears favorable - Ecovyst is acquiring these assets below replacement value and funding the purchase with existing cash reserves rather than taking on debt. This indicates strong liquidity positioning and disciplined capital allocation. Management's statement that the transaction multiple compares favorably to Ecovyst's current trading multiple suggests potential accretion once integrated.
Second, the geographical synergies are compelling. The Waggaman facility's proximity to Ecovyst's existing Baton Rouge operations creates operational complementarity that should enhance network flexibility across their Gulf Coast operations. In the sulfuric acid business, where logistics and regional supply-demand dynamics significantly impact economics, this network density can provide competitive advantages.
Third, this acquisition aligns with Ecovyst's articulated strategic framework of pursuing high-return organic growth complemented by targeted bolt-on acquisitions specifically in their Ecoservices segment. The transaction strengthens their ability to meet existing customer needs while creating capacity for future growth opportunities.
While the announcement lacks specifics on purchase price or expected EBITDA contribution, the below-replacement-cost acquisition of hard assets in the capital-intensive chemical industry typically represents favorable value. The targeted Q2 2025 closing provides a clear integration timeline that should allow for methodical planning to maximize operational synergies.
"The acquisition of Cornerstone's sulfuric acid assets represents a unique opportunity for Ecoservices to strengthen its network of facilities and expand its ability to support the future growth needs of our customers, on a cost-efficient basis," said George L. Vann, President of Ecoservices. "We look forward to serving the
"Given its proximity to our existing
About Ecovyst
Ecovyst Inc. and subsidiaries is a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services. We support customers globally through our strategically located network of manufacturing facilities. We believe that our products and services contribute to improving the sustainability of the environment.
We have two uniquely positioned specialty businesses: Ecoservices provides sulfuric acid recycling to the North American refining industry for the production of alkylate and provides high quality and high strength virgin sulfuric acid for industrial and mining applications. Ecoservices also provides chemical waste handling and treatment services, as well as ex-situ catalyst activation services for the refining and petrochemical industry. Advanced Materials & Catalysts, through its Advanced Silicas business, provides finished silica catalysts, catalyst supports and functionalized silicas necessary to produce high performing plastics and to enable sustainable chemistry, and through its Zeolyst Joint Venture, innovates and supplies specialty zeolites used in catalysts that support the production of sustainable fuels, remove nitrogen oxides from diesel engine emissions and that are broadly applied in refining and petrochemical process. For more information, see our website at https://www.ecovyst.com.
Note on Forward-Looking Statements
Some of the information contained in this press release constitutes "forward-looking statements." Forward-looking statements can be identified by words such as "anticipates," "intends," "plans," "seeks," "believes," "estimates," "expects," "projects," "aims" and similar references to future periods. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. We caution you, therefore, against relying on any of these forward-looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. These forward-looking statements speak only as of the date of this release. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.
For more information:
Gene Shiels – Director of Investor Relations
(484) 617 1225
gene.shiels@ecovyst.com
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SOURCE Ecovyst Inc.
FAQ
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