Acquisition Overview#
Ecovyst Inc. has announced a definitive agreement to acquire the Calabrian sulfur dioxide and related sulfur derivatives business from INEOS Enterprises for $190 million. This deal is subject to standard adjustments and is expected to close by the end of the second quarter of 2026.
About Calabrian#
Calabrian operates manufacturing facilities in Port Neches, Texas, and Timmins, Ontario, Canada. The company produces sulfur dioxide and related sulfur derivatives, which are used in various applications, including mining, water treatment, and specialty chemical production across North America.
Financial Impact#
The acquisition will expand Ecovyst’s product offerings to include sulfur dioxide, sodium bisulfite, sodium thiosulfate, and sodium metabisulfite. Calabrian reported an Adjusted EBITDA of approximately $23.7 million over the past twelve months. With Ecovyst’s own EBITDA at $153.5 million, this acquisition is expected to increase the company's earnings power by roughly 15%. The purchase price reflects a multiple of about 8.0 times Calabrian's trailing twelve-month Adjusted EBITDA.
Funding and Investor Response#
Ecovyst plans to finance the acquisition using a mix of cash on hand and new debt. Following the announcement, investors reacted positively, with shares trading at $14.18, close to their 52-week high of $14.43. The company’s CEO, Kurt J. Bitting, emphasized that this acquisition aligns with their strategy to enhance shareholder value and diversify their portfolio, particularly in key sectors like mining.
In related news, Ecovyst recently reported strong financial results for the fourth quarter of 2025, exceeding analyst expectations with earnings per share of $0.28 and revenue of $199.4 million.