M&As: Technip Energies buys Ecovyst’s advanced materials/cataylsts biz for US$556 mn

Technip Energies says that it is acquiring the Advanced Materials & Catalysts business from speciality catalysts firm Ecovyst Inc at a purchase price of US$556 million. The deal will enable Technip Energies’ to expand its catalyst capabilities and technology offering, increasing its recurring revenues for Technology, Products & Services (TPS) segment. The transaction is anticipated to close by the first quarter of 2026, pending customary regulatory approvals and closing conditions.

Furthermore, this strategic transaction strengthens Technip Energies’ portfolio by broadening its capabilities in advanced catalysts and process technologies. Catalysts are materials that accelerate chemical reactions and improve process efficiency, and are at the core of many process technologies, with applications in traditional markets, such as polyethylene or hydrocracking, and growth areas, such as sustainable fuels production. 

The acquisition supports Technip Energies’ strategy for growth of its TPS business segment and drives long-term value creation. By integrating Advanced Materials & Catalysts, Technip Energies will benefit from increased recurring revenues tied to customer operating expenditures and improved long-term revenue visibility. On a pro-forma basis for 2024, Advanced Materials & Catalysts increases TPS' contribution to Segment EBITDA from 39% to approximately 45%. 

Under the terms of the agreement, Technip Energies will acquire the entire Advanced Materials & Catalysts business, comprising: Advanced Silicas, a manufacturer and supplier of specialty silica-based advanced materials and catalysts for plastics, chemicals, and industrial applications; and Zeolyst International, a 50:50 joint venture with Shell Catalysts & Technologies, which is a supplier of custom zeolite-based advanced materials and catalysts used in hydrocracking, sustainable fuels and custom catalyst applications, such as plastics recycling.

Advanced Materials & Catalysts, with a total revenue of US$223 million and an EBITDA margin of ~25% for 2024, brings more than 40 years of expertise in the chemicals and downstream sectors. It has three manufacturing facilities in the US and Europe, and 330 employees.

For Technip Energies, the benefits are five-fold: it will expand its capability in catalysts value chain: establishing a scalable catalysts platform built on high-value silicas and zeolites supporting the development of Technip Energies’ process technologies; secure leading positions in markets with long-term visibility (e.g. polyethylene and hydrocracking), while also unlocking promising growth avenues for Advanced Materials & Catalysts’ advanced materials and catalyst portfolio in emerging end uses e.g. Sustainable Aviation Fuel (SAF), biocatalysis, advanced recycling.

Besides the broader offerings, the acquisition also adds on enhanced R&D capabilities.

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