CCMP Capital Advisors LLC is buying Solvay's (Euronext SOLB) environmental services business unit in an $890 million transaction.
The eco services business, headquartered in Cranbury, New Jersey, recycles and supplies sulfuric acid to the oil refining industry. The group also manufactures acid proteins for industrial applications, including mining, water treatment and other chemical processes. The deal is expected to close in the fourth quarter.
The purchase price works out to an 8 times multiple on adjusted Ebitda.
Brussels-based Solvay says the sale will help it generate greater returns and focus on "strategic ambitions." The company announced in February that it was considering selling the unit.
CCMP, headquartered in New York, specializes in middle market buyouts and growth equity investments between $100 million and $500 million in North America and Europe. The firm does deals in the consumer, industrial, energy and health care sectors. In May, the firm bought a majority stake in manufacturing group the Hillman Companies Inc. For more on CCMP, watch our video interview with CCMP's Christopher Behrens on corporate carve-outs.
Weil Gotshal & Manges LLP advised CCMP on the deal.