Private equity firm Carlyle Group has agreed to acquire specialty inorganic chemicals, catalysts and engineered glass company PQ Corp. for around USD 1.5 billion from CCMP Capital Advisors. PQ Corp. a…
Private equity firm Carlyle Group has agreed to acquire specialty inorganic chemicals, catalysts and engineered glass company PQ Corp. for around USD 1.5 billion from CCMP Capital Advisors. PQ Corp. affiliate company Potters Industries Inc. makes glass beads and spheres for use in highway marking, polymers, oil drilling, metal grinding, and explosives, amongst others. The purchase price represents a robust multiple of 9.9 times trailing 12-month EBITDA (as of the 1Q 2007) of USD 151.2m. PQ had sales of USD 909 million in 2006. The sale marks a huge success for CCMP, which was formerly JPMorgan Partners, and which bought PQ in February 2005 for about USD 734 million, or around 7x EBITDA at the time. “CEO Mike Boyce and his team did a phenomenal job growing the earnings of the business”, said a source close to PQ. “They made their money the old fashioned way. It was a good company to start with and they just made it better”. PQ“s EBITDA has gained over 60% since the buyout.