PQ Group Holdings Inc said on Monday it has agreed to sell its performance chemicals business, which makes cleaning and whitening agents for toothpastes and surface coatings, to a partnership formed by Cerberus Capital Management, L.P. and Koch Minerals & Trading LLC for a deal valued at $1.1 billion.
The company, once the deal is closed, expects to use the proceeds to issue a special dividend of $2.50 to $3.25 per share for shareholders. The deal is expected to result in a debt reduction of $450 million to $550 million.
Last week, the chemical firm agreed to buy Chem32, a supplier of catalyst pre-activation services used in renewable fuels, for $44 million to boost its refining services business.
Citi is serving as lead financial advisor with BMO Capital Markets Corp. as co-advisor.
Read more at Reuters
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