INEOS and The Carlyle Group complete the agreement to combine INEOS Silicas and PQ Corporation

07-04-2008: Following clearance by the competition authorities, INEOS has completed the agreement to combine INEOS Silicas and PQ Corporation, the speciality chemical company owned by The Carlyle Group. The Carlyle Group will hold a 60% share and INEOS Capital the remaining 40% of the new company.

The new company is to be called PQ Corporation. It will be a global producer of speciality inorganic chemicals, catalysts, and engineered glass products and is expected to have annual sales of around US$1 billion. Mike Boyce, will assume responsibility as Chairman and Chief Executive Officer.

Today's announcement follows an agreement made between the two companies on the 11th October 2007. Operating under single ownership presents both businesses with new opportunities for innovation and growth that will provide significant customer benefit.

INEOS and The Carlyle Group will now begin the process of integrating the businesses into the new PQ Corporation.

"We are delighted to have the concluded this agreement as it represents another important step for INEOS and the long-term development of the Silicas business," said Andy Currie Director of INEOS Capital "INEOS Silicas business fits well within The PQ portfolio and provides greater geographical reach and presence to customers across a number of market sectors."

Terms of the transaction were not disclosed