MALVERN, PA — Ecovyst Inc. (NYSE: ECVT) has announced an agreement to acquire the sulfuric acid production assets of Cornerstone Chemical Company, located in Waggaman, Louisiana. This strategic investment aims to enhance Ecovyst’s Ecoservices division by expanding its sulfuric acid production capacity and increasing operational flexibility in the Gulf Coast region.
The company plans to fund the acquisition through cash on hand, with the transaction expected to close in the second quarter of 2025, pending customary regulatory approvals. The Waggaman facility will support Ecoservices’ commitment to serving both regeneration and virgin sulfuric acid customers with increased capacity and efficiency.
George L. Vann, President of Ecoservices, emphasized the strategic importance of the acquisition, stating, “The acquisition of Cornerstone’s sulfuric acid assets represents a unique opportunity for Ecoservices to strengthen its network of facilities and expand its ability to support the future growth needs of our customers, on a cost-efficient basis. We look forward to serving the Waggaman plant’s existing customers and strategically incorporate the acquired assets to support the future growth needs of Ecoservices’ customers.”
The Waggaman site’s proximity to Ecoservices’ Baton Rouge operations is expected to optimize logistics across the Gulf Coast. Kurt J. Bitting, Chief Executive Officer of Ecovyst, highlighted the financial and strategic advantages of the deal, explaining, “Given its proximity to our existing Baton Rouge site and alignment with our broader Gulf Coast operations, the acquisition of Cornerstone’s sulfuric acid assets not only complements Ecoservices’ current footprint but is also expected to bolster the resilience of its overall plant network. We are acquiring the assets at a cost below replacement value, aligning with our plan for executing on our high-return organic growth initiatives and targeting strategic bolt-on investments in Ecoservices. Additionally, the assets are being acquired at a transaction multiple basis that is favorable compared to Ecovyst’s current trading multiple, considering the expected pro forma EBITDA post-integration.”
The acquisition is described as being in line with Ecovyst’s strategy to drive shareholder value through targeted investments and enhanced operational capabilities. Once complete, the transaction is expected to position the company for long-term growth and expanded service for a growing customer base.
For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and MSN.