Technip Energies Acquires Advanced Materials and Catalysts Business from Ecovyst

On September 12, it was reported that Technip Energies has reached a final agreement with Ecovyst to acquire its Advanced Materials and Catalysts business for $556 million, which represents approximately a 9.8x EBITDA multiple.

This strategic transaction expands Technip Energies' capabilities in the field of advanced catalysts and process technologies, further strengthening its business portfolio.

This acquisition aligns with Technip Energies' prudent growth strategy for its Technology, Products & Services (TPS) business segment and will drive long-term value creation. By integrating the Advanced Materials and Catalysts business, Technip Energies will benefit from increased recurring revenue related to clients’ operating expenditures and enhanced long-term revenue visibility. Based on 2024 pro forma data, the Advanced Materials and Catalysts business will increase the TPS segment’s contribution to departmental EBITDA from 39% to approximately 45%.

According to the terms of the agreement, Deshinib Energy Company will acquire the entire advanced materials and catalysts business, including:
Advanced Silica Business: Focused on the production and supply of specialty silicon-based advanced materials and catalysts, with products applied in the plastics, chemical, and industrial sectors.
Zeolyst International: A 50:50 joint venture established with Shell Catalysts & Technologies, Zeolyst International is a leading supplier of customized zeolite-based advanced materials and catalysts. Its products are widely used in specialized catalyst fields such as hydrocracking, sustainable fuels, and plastic recycling.

In 2024, the total revenue of the advanced materials and catalysts business reached $223 million, with an EBITDA profit margin of approximately 25%. This business has over 40 years of expertise in the chemical and downstream sectors, with three production bases located in the United States and Europe, employing a total of 330 people.

The transaction is expected to be completed in the first quarter of 2026, subject to customary regulatory approvals and the satisfaction of closing conditions.

The complementary technologies of advanced materials and catalysts will assist Deshinib Energy Company in developing integrated technologies and catalyst solutions. Support can be provided both in mature application areas and in rapidly growing fields such as circular chemistry, carbon capture, and sustainable fuels.

For Deshinib Energy Company, the benefits of this acquisition are reflected in five aspects:

• Expand catalyst value chain capabilities: Build a scalable catalyst platform based on high-value silicon materials and zeolites to support the research and development of Technip Energies' process technology.
• Achieve a leading position in high-potential growth markets: Consolidate a leading position in markets with long-term development visibility such as polyethylene and hydrocracking, while expanding the growth potential of advanced materials and catalyst product portfolios in the Advanced Materials and Catalysts business into emerging end-use application areas such as sustainable aviation fuel (SAF), biocatalysis, and advanced recycling.
• Enhance R&D capability: Introduce world-leading expertise in catalyst design and materials science to complement the process technology laboratory of Technip Energies.
• Enrich the customer product portfolio and value proposition: provide integrated solutions covering the entire asset lifecycle, achieving measurable improvements in process efficiency, reliability, and emission performance for a broader customer base.
• Improve financial conditions and leverage value creation: deliver immediate benefits and enhanced cash flow, improve earnings quality, and create clear opportunities for synergy.

Arnaud Pieton, CEO of Technip Energies, stated: “The acquisition of the Advanced Materials and Catalysts business is value-accretive for Technip Energies and aligns with our strategy of driving long-term value creation through prudent capital allocation. This business brings us differentiated capabilities in catalyst technologies and advanced materials, strengthening our ability to provide customers with high-performance, process-critical solutions. This acquisition is an important step in reinforcing our technology platform, injecting a new dimension into our catalysts business, and opening up avenues for product development and market expansion. We are very pleased to welcome the Advanced Materials and Catalysts business team to join us as we work together to build a more integrated and technology-driven business portfolio.”

Ecovyst CEO Kurt Bitting stated, "We are proud of the achievements of the Advanced Materials and Catalysts business as part of Ecovyst. Technip Energies is the ideal long-term partner to further unlock the innovative potential of the Advanced Materials and Catalysts business and ensure stability for customers and employees. We believe that as part of Technip Energies, the Advanced Materials and Catalysts business will continue to thrive."

Paul Whittleston, President of Advanced Materials and Catalysts, stated: "This is an exciting milestone for our Advanced Materials and Catalysts business. For years, our business has been characterized by technical rigor, trusted customer relationships, and influence in key industrial applications. Joining Dechra Energy will bring us powerful new opportunities to scale our technology, accelerate innovation, and create greater value for our customers. We are honored to join this global leader that shares our vision and is committed to achieving a more sustainable future."