PPG Agrees for $310 Million Deal with QEMETICA S.A for Silicas Business Sale

PPG, a global leader in paints, coatings, and specialty materials, has announced a definitive agreement to sell its silicas products business to QEMETICA S.A., a privately held chemical manufacturer based in Warsaw, Poland. The deal, valued at approximately $310 million in pre-tax proceeds, is expected to close in the fourth quarter of 2024, pending standard closing conditions. This sale is the outcome of PPG’s strategic review of its silicas business, initiated on January 9, 2024. The company engaged Morgan Stanley & Co. LLC as its financial advisor and Hogan Lovells as its legal advisor for the transaction.

PPG’s silicas products business specializes in the production and supply of precipitated silica products, which serve as performance-enhancing additives for various industries worldwide. In 2023, this business segment contributed between 1-2% of PPG’s total net sales. The sale includes PPG’s manufacturing facilities in Lake Charles, Louisiana, and Delfzijl, The Netherlands. Additionally, QEMETICA will lease PPG’s silicas manufacturing and research and development operations located in Barberton, Ohio, and Monroeville, Pennsylvania, respectively. The silicas products business currently employs about 400 people.

Tim Knavish, Chairman and CEO of PPG, expressed his satisfaction with the agreement, stating that it aligns with PPG’s strategic goal of focusing more on its core technology-driven coatings and specialty products businesses. He emphasized that the transaction will help the company accelerate its organic growth and increase shareholder value. Knavish also extended his gratitude to the employees of the silicas business for their dedication and efforts in meeting customer needs over the years.

QEMETICA, a prominent chemical manufacturer in Central Europe, boasts substantial production capacity in soda ash, vacuum salt, and silicates. The company’s growth strategy is centered on expanding its global footprint through strategic acquisitions and broadening its operations beyond Europe. This acquisition of PPG’s silicas business is a significant step in QEMETICA’s plans to diversify its portfolio and enter new markets.

This sale marks a strategic shift for PPG, enabling it to streamline its focus on high-margin, technology-differentiated products while allowing QEMETICA to enhance its position in the global chemical industry through the acquisition of PPG’s well-established silicas business. The deal represents a mutually beneficial arrangement, with both companies poised to strengthen their respective market positions.

For 140 years, PPG has been dedicated to creating and providing the reliable paints, coatings, and specialty materials that customers trust. Through dedication and innovation, PPG addresses its customers' most significant challenges, working closely with them to find the best solutions. Headquartered in Pittsburgh, PPG operates and innovates in over 70 countries, reporting net sales of $18.2 billion in 2023. The company serves a diverse range of customers across the construction, consumer products, industrial, transportation markets, and aftermarkets.