Ecovyst to acquire Cornerstone's sulfuric acid assets in Louisiana

Ecovyst Inc. (NYSE: ECVT), a leading integrated and innovative global provider of advanced materials, specialty catalysts, virgin sulfuric acid and sulfuric acid regeneration services ("Ecovyst"), announced that it has reached an agreement to acquire the sulfuric acid production assets of Cornerstone Chemical Company located in Waggaman, Louisiana. The acquisition is expected to expand Ecoservices' capacity to serve regeneration and virgin sulfuric acid customers and provide for enhanced flexibility within the Company's existing plant network in the Gulf Coast. Ecovyst plans to fund the acquisition with cash on hand, and the transaction is targeted to close in the second quarter of 2025, subject to customary closing conditions.

"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 Waggaman plant's existing customers and strategically incorporate the acquired assets to support the future growth needs of Ecoservices' customers."

"Given its proximity to our existing Baton Rouge site and alignment with our broader Gulf Coast operations, the acquisition of Cornerstone's sulfuric acid assets not only complements Ecoservices' current footprint but is also expected to bolster the resilience of its overall plant network. We are acquiring the assets at a cost below replacement value, aligning with our plan for executing on our high-return organic growth initiatives and targeting strategic bolt-on investments in Ecoservices. Additionally, the assets are being acquired at a transaction multiple basis that is favorable compared to Ecovyst's current trading multiple, considering the expected pro forma EBITDA post-integration," said Kurt J. Bitting, Ecovyst's Chief Executive Officer. "We believe this acquisition is well-aligned with the Company's strategy of prioritizing and pursuing actions that will maximize Ecoservices' value creation potential for shareholders."

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ALCHEMPro News Desk (HU)