WAYNE, PA — Ecovyst Inc. (NYSE: ECVT) has entered into a definitive agreement to divest its Advanced Materials & Catalysts segment to Technip Energies for $556 million, a deal that values the business at 9.8 times its 2024 adjusted EBITDA. The transaction is expected to close in the first quarter of 2026, subject to regulatory approvals and customary closing conditions.
Ecovyst said the decision followed a strategic review that concluded the market was undervaluing the segment. “The Advanced Materials & Catalyst segment is a high-quality business with attractive margins. We determined that the market undervalued the segment, prompting a strategic review. We believe this sale, approved by our Board, will allow us to realize its value for our stockholders,” said Kurt J. Bitting, CEO of Ecovyst.
Net proceeds after taxes and transaction-related costs are estimated at $530 million. The company plans to partially repay its Term Loan, lowering its projected net debt leverage ratio to below 1.5x. Ecovyst also intends to preserve liquidity for growth initiatives and continue shareholder returns, with roughly $200 million still available under its share repurchase program.
“This transaction marks a pivotal moment for Ecovyst,” Bitting added. “It results in a stronger balance sheet, greater financial flexibility, and the ability to pursue strategic opportunities while returning capital to stockholders in a disciplined and impactful way.”
For Technip Energies, the acquisition strengthens its position in catalysts and advanced materials. CEO Arnaud Pieton said the deal aligns with the company’s long-term strategy: “It brings differentiated capabilities in catalyst technologies and advanced materials, enhancing our ability to deliver high-performance, process-critical solutions to our clients. This acquisition is an important step in strengthening our technology platform and unlocking avenues for product development and market expansion.”
Advisors on the deal include Lazard Inc. and Ropes & Gray LLP for Ecovyst, and Evercore with Gibson, Dunn & Crutcher LLP for Technip Energies.
The sale underscores Ecovyst’s push to streamline operations, bolster financial resilience, and focus capital on initiatives with higher growth potential. For Technip Energies, the deal expands its technology-driven portfolio and enhances its competitive edge in global energy and materials markets.
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