Ecovyst (ECVT) investor relations material

Deal rationale and strategic fit

• Acquisition of advanced materials and catalysts business accelerates growth in technology, products, and services, expanding capabilities and enhancing R&D, catalyst design, and materials science expertise.

• Complements existing technology portfolio, strengthens positions in high-growth markets like sustainable fuels, biocatalysis, and carbon capture, and supports bolt-on acquisition strategy.

• Expands catalyst value chain, secures leading positions in key markets, and broadens customer offerings.

• Sale unlocks value for seller's stockholders, as the market undervalued the business.

• Increases recurring revenue exposure and supports long-term value creation.

Financial terms and conditions

• Purchase price is $556 million, subject to adjustments for cash, debt, and working capital, representing a 9.8x EBITDA multiple on 2024 adjusted EBITDA.

• AM&C generated $223 million in revenue and $57 million EBITDA in 2024, with EBITDA margin over 25%.

• Transaction fully funded from existing net cash position, with no impact on investment grade credit rating and flexibility for alternative funding.

• Net proceeds to seller expected to be approximately $530 million after taxes and expenses; partial repayment of seller's Term Loan required.

• No prepayment; full payment to be made at closing, expected by Q1 2026.

Synergies and expected cost savings

• Value creation levers include cross-selling, new business generation, and cost optimization.

• Cost synergies from consolidating G&A, sales, marketing, and R&D functions; efficiencies expected quickly.

• Revenue and commercial synergies anticipated to materialize over the medium to long term.

• Acceleration of commercialization for catalyst portfolio and new product development.