US' Ecovyst to acquire INEOS Calabrian business for $190 mn

04 May '26

3 min read

US' Ecovyst to acquire INEOS Calabrian business for $190 mn

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Ecovyst will acquire INEOS's Calabrian sulfur derivatives business for $190 million, expanding into sulfur dioxide and related products like sodium bisulfite and thiosulfate.
The deal strengthens its presence in mining and water treatment, with ~$23.7 million EBITDA and ~2x leverage. Synergies are expected to lower the ~8x multiple to below 7x within three years post-close.

Ecovyst Inc. (NYSE: ECVT), a leading provider of virgin sulfuric acid and regenerated sulfuric acid products and services ("Ecovyst"), announced on May 1, Friday that it has signed a definitive agreement to acquire the Calabrian sulfur dioxide and related sulfur derivatives business ("Calabrian") from INEOS Enterprises for a purchase price of $190 million, subject to certain customary adjustments. Through its manufacturing facilities in Port Neches, Texas and Timmins, Ontario, Canada, Calabrian is a leading producer of sulfur dioxide and related sulfur derivatives in North America, serving key end uses including mining, water treatment and specialty chemical production. Following closing, the acquisition is expected to expand Ecovyst's existing product and service offering through further expansion into the sulfur dioxide, sodium bisulfite, sodium thiosulfate and sodium metabisulfite product groups. The transaction is targeted to close by the end of second quarter of 2026, subject to satisfaction of customary closing conditions.

"The Calabrian acquisition aligns with our strategy to deliver shareholder value by leveraging our sulfur chemistry expertise, while also diversifying our portfolio and further expanding our presence in key end use segments such as mining," said Kurt J. Bitting, Ecovyst's Chief Executive Officer. "Ecovyst is already an established producer of sodium bisulfite, and Calabrian's sulfur dioxide and other sulfur derivative product offerings share meaningful end-use, customer, and sulfur-chemistry overlap with Ecovyst, positioning us to integrate Calabrian's product portfolio onto a familiar commercial and operational footprint. Similar to our existing businesses, Calabrian has a highly experienced and engaged management team, and a diverse base of long-standing, blue-chip customers, with a high degree of recurring sales under significant long-term contracts. In addition, the Calabrian business is characterized by strong cash generation and Adjusted EBITDA margins that are expected to be accretive to Ecovyst's portfolio," Bitting added.

Ashley Reed, Chairman of INEOS Enterprises said, "INEOS Calabrian has been part of INEOS Enterprises for the past ten years, during which time it has delivered significant improvements in safety, operational performance and financial results. This transaction, valued at $190 million, subject to certain customary adjustments, reflects our disciplined approach to portfolio management — acquiring businesses, improving them at pace, and realizing value.

Calabrian is a strong, well-positioned semi-specialty chemicals business. However, it is not a core fit within INEOS's long-term portfolio. Ecovyst is well placed to take the business forward and support its next phase of growth".

"Consistent with our disciplined capital allocation strategy, we intend to fund the Calabrian acquisition through a combination of cash on hand and proceeds of new debt financing," said Mike Feehan, Ecovyst's Chief Financial Officer. "Given Calabrian's Adjusted EBITDA profile, with trailing twelve-month Adjusted EBITDA of approximately $23.7 million, we expect our combined net debt leverage ratio would be approximately 2x at close of the transaction. The transaction reflects a purchase multiple of approximately 8.0x trailing twelve-month Adjusted EBITDA, which we expect to step down to below 7.0x as identified synergies are fully realized over the three years following close," said Feehan.

Lazard Frères & Co. LLC is serving as financial advisor, and Ropes & Gray LLP and Babst, Calland, Clements and Zomnir, P.C. are serving as legal counsel to Ecovyst.