After strategic review, Albemarle to spin off Catalysts unit
Albemarle Corporation, based in Charlotte, North Carolina, U.S.A., announced that following a strategic review, it has chosen to retain its Catalysts business under a separate, to-be-named entity and wholly owned subsidiary of Albemarle. The company said the move will allow the Catalysts business to respond to unique customer needs and global market dynamics more effectively, while also achieving its growth ambitions.
Albemarle Corporation, a global specialty chemicals company, has leading positions in lithium, bromine, and refining catalysts. In response to the accelerating energy transition, the Catalysts business announced in September 2021 a strategy focused on new geographies in India and Southeast Asia, attractive crude-to-chemical technologies, renewable diesel to serve a larger hydrotreated vegetable oil market, and pyrolysis oil treatment for bio-oil (synthetic) fuel. Albemarle simultaneously announced a strategic review of the Catalysts business to determine the best way to support its strategy for growth.
During the review, Albemarle considered a wide range of value creation opportunities for the Catalysts business including a joint venture with a partner, a spin-off or sale, or Albemarle retaining the business. The company conducted due diligence with multiple parties, including strategic and financial sponsors, but in the end determined that the best value for Albemarle was to hold the business as a separate entity.
“We are confident that there is significant value in the Catalysts business that can address the needs of the evolving global market and create growth for customers, employees, and our shareholders,” said Albemarle CEO Kent Masters. “We believe that retaining the business under this new structure is the best path to that outcome.”
The process to move the Catalysts business to its new legal structure is underway and is expected to be finalized in approximately 18 months. The business will continue to be led by Raphael Crawford, current president of the Catalysts global business unit.