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JP Morgan Partners and CCMP Capital Advisors sell chemicals producer to Carlyle

CCMP Capital Advisors, on behalf of JP Morgan Partners, has reached agreement for the Carlyle Group to acquire the parent company of PQ Corporation, a leading producer of specialty inorgan

CCMP Capital Advisors, on behalf of JP Morgan Partners, has reached agreement for the Carlyle Group to acquire the parent company of PQ Corporation, a leading producer of specialty inorganic chemicals, catalysts and engineered glass products, in a transaction valued at approximately USD1.5bn.

Affiliates of JPMP acquired PQ in February 2005. In August 2006, the buyout and equity growth investment professionals of JPMP formed CCMP Capital and have continued to manage the investment on behalf of JPMP.

Says PQ chief executive Mike Boyce: ‘The support of CCMP and the board of directors since February 2005 has made possible the outstanding progress we achieved over a short period of time. The entire PQ team looks forward to working with Carlyle to continue the implementation of PQ’s growth strategy.’

Timothy Walsh, managing director of CCMP Capital, adds: ‘We are proud of what Mike Boyce and his team have accomplished in transforming PQ and believe the business is well positioned for the future. We wish them well as PQ enters the next stage of its development.’

The transaction is expected to close in the third quarter subject to regulatory review. Lehman Brothers and JP Morgan Securities are financial advisors and Latham & Watkins is legal counsel to PQ, while Carlyle was advised by UBS Securities and Debevoise & Plimpton.

JP Morgan Partners is a private equity division of JPMorgan Chase that has invested more than USD15bn worldwide in consumer, media, energy, industrial, financial services, healthcare and technology companies since its establishment in 1984.

In August last year JPMP’s investment professionals formed entities independent of JPMorgan Chase. The buyout and growth equity professionals formed CCMP Capital Advisors, which focuses exclusively on buyout and growth equity investments primarily in five targeted industry sectors in the US and Europe. The venture team formed Panorama Capital, and continues to focus on technology and life sciences investments. CCMP Capital and Panorama continue to manage the JPMP investments under a management agreement with JPMorgan Chase.

The Carlyle Group is a global private equity firm with USD58.5bn under management that invests in buyouts, venture and growth capital, real estate and leveraged finance in Asia, Europe and North America, focusing on aerospace and defense, automotive and transportation, consumer and retail, energy and power, healthcare, industrial, technology and business services and telecommunications and media.

Since 1987, Carlyle has invested USD28.3bn of equity in 636 transactions for a total purchase price of USD132bn. The group employs nearly 800 people in 18 countries, while Carlyle portfolio companies have more than USD87bn in revenues and employ more than 286,000 people worldwide.

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