$310 million! PPG sells silica business!

PPG, a global leader in paints, coatings and specialty materials, announced on August 29 that it will sell its silica products business to QEMETICA, a privately held manufacturer of soda ash, silicates and other specialty chemicals headquartered in Warsaw, Poland, with top production capacity in Europe, for approximately $310 million in pre-tax proceeds.

The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions. The transaction is the result of PPG's evaluation of strategic alternatives for the business, which was first announced on January 9, 2024. Morgan Stanley & Co. served as financial advisor to PPG and Hogan Lovells served as its legal advisor.

PPG's silica business manufactures and supplies precipitated silica products as performance-enhancing additives to companies around the world. In 2023, the silica business accounted for 1-2% of PPG's total net sales.

The transaction includes PPG's precipitated silica manufacturing facilities in Lake Charles, Louisiana and Delfzijl, the Netherlands. In addition, QEMETICA will lease silica manufacturing and R&D facilities at PPG's Barberton, Ohio, and Monroeville, Pennsylvania, facilities, respectively. The silica products business is led by approximately 400 employees.

Tim Knavish, PPG chairman and chief executive officer, said: "After an extensive strategic review process, we are pleased to have reached an agreement with QEMETICA and believe in the company's ability to lead the silica products business forward. This transaction will enable us to further focus our resources on technologically differentiated coatings and specialty products businesses to accelerate our organic growth and drive shareholder value creation. I would like to thank the silica products business employees for their dedication and commitment over the years to provide quality products and services that meet the evolving needs of our customers."