Qemetica becomes the third player in Europe and the second in North America in precipitated silica market
Qemetica has finalised the acquisition of the precipitated silica business from PPG for 1.2 billion zlotys (approximately $310 million) in one of the largest transactions ever carried out by a Polish company on the US market. Thus, Qemetica, the largest producer of, among other things, brewed salt in Poland and the largest supplier of sodium silicate in Europe, has acquired plants in the US and the Netherlands, thereby increasing revenues by more than one billion zlotys. At the same time, the Group becomes the third player in Europe and the second in North America in the market for precipitated silica, which is necessary, among other things, in the production of modern car tyres. American markets will generate revenues equivalent to nearly 800 million zlotys, thus increasing the geographical diversification of Qemetica’s operations.
This largest industrial acquisition in the industrial area made by a Polish company in the US is the result of Qemetica's announced strategy for 2024-2029. The acquisition - in addition to increasing innovation and expanding its portfolio with sustainable products - strengthens the group's presence outside of Europe and provides new sources of growth. Qemetica's new asset specialises in the production of precipitated silica - a key raw material used globally in a wide variety of applications including tyres, mechanical rubber goods, batteries, coatings, and food and animal feed products. The acquisition will allow Qemetica to accelerate its international expansion in North American countries and diversify its product portfolio, which already reaches nearly 100 countries worldwide.
From PPG, a global producer of paints, coatings and specialty materials, Qemetica is acquiring its portfolio of value-added and differentiated precipitated silicas, which have a proven track record of driving innovation. The acquisition includes production facilities with a total capacity of approximately 200,000 tonnes. The silica business will become Qemetica's second largest area in terms of revenue. With the transaction, the Polish group has become number two player in North America and three in the Old Continent.
The group's diverse portfolio of assets, i.e. soda ash and baking soda, brewed salt, among other things, expanded to include silica, extends Qemetica's value chain. This means that the chemical group - which today is one of Europe's largest suppliers of silicates - a raw material essential for silica production - will, thanks to the acquisition of the new business, activate at the next stage of production, generating additional value. At the same time, silicates are made from soda ash, of which Qemetica is one of the key producers in Europe.
"Qemetica has proven its readiness for international acquisitions. We are very pleased to finalise the acquisition of the precipitated silica business. As we announced, geographic diversification of businesses is one of our priorities. By establishing a new, eighth business, we are moving up our value chain, going beyond Europe and fulfilling our global aspirations", says Kamil Majczak, CEO of Qemetica.
With the transaction, Qemetica acquires production facilities in the US (in Lake Charles, Louisiana) and Europe (in the city of Delfzijl, The Netherlands). In addition, as part of the acquisition, Qemetica will lease silicas manufacturing and research and development operations at PPG sites in Barberton, Ohio and Monroeville, Pennsylvania, respectively. The new business shows good, stable prospects. The precipitated silica business employs around 400 people, who will join Qemetica's existing workforce of nearly 3,500k employees in Europe.
Since 2014, Qemetica is in the portfolio of companies of Kulczyk Investments, an international private investment house which aims to grow its asset portfolio over the long term through organic growth based on best management practices and investment in innovation, as well as through acquisitions.
"With the acquisition in the US, Qemetica enters the premier league of industrial companies with production assets in different parts of the world, thus guaranteeing revenue diversification and know-how transfer. This transaction is a model example illustrating our philosophy of building group value. Our largest asset, Qemetica, in a spectacular way makes the largest acquisition of this type in the US by a Polish company", says Dawid Jakubowicz, President of the Management Board of Kulczyk Investments.
To date, Qemetica has operated in seven business lines producing soda, brewing salt, crop protection products, polyurethane foams, silicates and glass packaging, as well as providing rail transport services. The precipitated silica business will be its eighth business area. In addition to the new business, Qemetica has nine production existing facilities in Poland and Germany and distribution companies in the crop protection products business in several European countries.
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