PQ Group Holdings Completes Sale of Performance Materials; Board Declares Special Cash Dividend

PQ Group Holdings

MALVERN, PA — PQ Group Holdings Inc. (NYSE: PQG), a leading integrated and innovative global provider of specialty catalysts, chemicals and services, recently today that it completed the sale of its Performance Materials business for a purchase price of $650 million, subject to customary closing adjustments, to an affiliate of The Jordan Company, L.P. (“TJC”), a U.S. middle-market private equity firm (www.thejordancompany.com) that was founded in 1982.

With the sale of Performance Materials at an attractive valuation, we take a significant step in reshaping the PQ portfolio toward a higher-margin, higher-growth-potential business,” said Belgacem Chariag, PQ’s Chairman, President and Chief Executive Officer. “We are also pleased to expand our capital allocation with a special dividend, and we look forward to continuing to execute our strategic transformation in 2021, unlocking greater value for shareholders.”

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The company expects to use after tax cash proceeds from the sale of its Performance Materials business to reduce its debt by approximately $465 million. In addition, the company’s Board of Directors has declared a special cash dividend of $250 million, or $1.80 per share, payable on December 29, 2020 to shareholders of record as of the close of business on December 21, 2020.

Goldman Sachs & Co., LLC and Harris Williams LLC are serving as financial advisors and Ropes & Gray LLP is serving as legal counsel for PQ. Kirkland & Ellis LLP is serving as legal counsel and Barclays Capital, Inc. is serving as financial advisor for TJC.

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