Ecovyst Inc. ( ECVT ) said Thursday it will sell its Advanced Materials & Catalysts division to Technip Energies ( THNPF ) in a $556 million cash deal, reshaping both companies’ strategic focus.

The sale values the business at roughly 10 times its 2024 adjusted EBITDA. Closing is targeted for early 2026. Ecovyst ( ECVT ) expects net proceeds of about $530 million after taxes and expenses.

Kurt J. Bitting, the company’s chief executive, said the decision followed a strategic review that showed the market undervalued the unit. Proceeds will be used to cut debt and return capital to investors.

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Bitting said the divestiture will reduce the company’s net debt leverage ratio to below 1.5x and provide flexibility to pursue growth opportunities. Ecovyst ( ECVT ) also plans to continue its $200 million share buyback program, signaling confidence in its core sulfuric acid and regeneration businesses.

For Technip Energies ( THNPF ), the acquisition accelerates its expansion into catalysts and advanced materials, critical technologies that enhance efficiency and sustainability across industries.

Arnaud Pieton, chief executive of the Paris-based firm, said the deal broadens its offerings in polyethylene, hydrocracking, and emerging markets such as sustainable aviation fuel and carbon capture. The purchase also includes Zeolyst International, a joint venture with Shell plc ( SHEL ) .

The Advanced Materials & Catalysts business generated $223 million in revenue last year with a 25% EBITDA margin, supported by three plants in the United States and Europe and a workforce of about 330.

Technip Energies ( THNPF ) said the acquisition will add recurring revenue streams, strengthen its R&D capabilities, and enhance its ability to deliver integrated solutions to clients seeking cleaner, more efficient processes.

Price Action: ECVT shares are trading higher by 6.96% to $9.830 premarket at last check Thursday.

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