PPG Industries has successfully finalized the sale of its silicas products business to QEMETICA, a privately held chemical manufacturer based in Warsaw, Poland, for approximately $310 million in pre-tax proceeds. This strategic transaction represents a significant step in PPG’s efforts to streamline its portfolio while allowing QEMETICA to expand its global footprint in specialty chemicals, including soda ash and silicates.
A Legacy of Innovation and Dedication
PPG’s silicas products business has long been recognized for its contribution to the global market as a supplier of precipitated silica products. These materials are used as performance-enhancing additives in various applications, serving major companies worldwide. In 2023, the silicas products business accounted for 1-2% of PPG’s total net sales.
The transaction encompasses two major manufacturing facilities in Lake Charles, Louisiana, and Delfzijl, The Netherlands. Additionally, QEMETICA will lease manufacturing operations in Barberton, Ohio, and research and development facilities in Monroeville, Pennsylvania. Approximately 400 employees, who have been integral to the business’s success, will transition to QEMETICA as part of the agreement.
Tim Knavish, PPG’s chairman and chief executive officer, expressed his gratitude to the employees of the silicas products business:
“We are pleased to complete this transaction with QEMETICA, and I want to thank the silicas products business employees for their dedication and commitment to the business and to PPG customers throughout the years.”
QEMETICA’s Strategic Expansion
QEMETICA is a prominent European chemical manufacturer known for its leading production capacities in soda ash, evaporated salt, and silicates. The acquisition aligns with QEMETICA’s growth strategy, which aims to build a global presence through strategic acquisitions and operational expansion beyond Europe. The company is committed to sustainable development and advancing innovative chemical solutions to serve diverse industries.
By acquiring PPG’s silicas products business, QEMETICA is poised to enhance its portfolio and tap into new markets while leveraging PPG’s established expertise in precipitated silica.
A Strategic Decision for PPG
The sale is the culmination of PPG’s exploration of strategic alternatives for its silicas products business, first announced on January 9, 2024. This move underscores PPG’s focus on aligning its operations with its core strengths in paints, coatings, and specialty materials. Morgan Stanley & Co. LLC acted as PPG’s financial advisor for the transaction, while Hogan Lovells served as its legal advisor.
About PPG Industries
Founded over 140 years ago, PPG (NYSE: PPG) continues to innovate in paints, coatings, and specialty materials. With headquarters in Pittsburgh, the company operates in more than 70 countries and reported $18.2 billion in net sales in 2023. PPG serves diverse sectors, including construction, consumer products, industrial applications, and transportation markets. Through collaboration and dedication, PPG remains committed to protecting and beautifying the world.
About QEMETICA
QEMETICA is a Warsaw-based leader in the chemical industry, with a strong presence in soda ash, silicates, and specialty chemicals production. The company is focused on sustainability and expanding its operations globally through innovative approaches and strategic acquisitions. This transaction marks a significant milestone in QEMETICA’s journey toward becoming a global powerhouse in the specialty chemicals market
