Innospec Acquires QGP Química
December 11 2023 - 4:45PM
Innospec Inc. (NASDAQ: IOSP) today announced that it
completed the acquisition of QGP Química Geral (“QGP”), a leading
specialty chemicals company based in Brazil. Terms of
the acquisition were not disclosed.
With this acquisition, Innospec now has a
meaningful manufacturing, customer-service and product development
base in South America which is one of the largest and most
important global markets for all Innospec technologies. QGP also
adds new surfactant and other specialty chemistries to Innospec’s
global portfolio in important growth markets like Agriculture.
Founded in 1992, QGP has 300 employees. Innospec
will integrate QGP into its Performance Chemicals business.
Patrick S. Williams, President and CEO of
Innospec Inc. said, “We are very pleased to complete this
acquisition. We have been highly impressed by QGP’s founders who
have built a leading specialty chemical company backed by excellent
customer service, innovation and technical support similar to our
own. The product development and manufacturing capabilities of QGP
complement every Performance Chemicals end-market that we serve
including Personal Care, Agriculture, Home Care, Industrial
Chemicals, Construction and Mining.”
Bruce McDonald, President of Performance
Chemicals at Innospec added, “We are delighted to welcome QGP’s
employees and its extremely complementary capabilities to Innospec.
We are excited to now have a significantly stronger and broader
offering for our customers both in Brazil and globally.”
Patrick S. Williams concluded, “This acquisition
aligns with our long-stated M&A focus to further strengthen our
Performance Chemicals segment and add a manufacturing base in South
America. Following this acquisition, we continue to have an
extremely strong, debt-free balance sheet and remain
well-positioned for additional M&A, consistent shareholder
returns, and organic growth investments.”
Use of Non-GAAP Financial
Measures
The information presented in this press release
includes financial measures that are not calculated or presented in
accordance with Generally Accepted Accounting Principles in the
United States (GAAP). These non-GAAP financial measures comprise
EBITDA, income before income taxes excluding special items, net
income excluding special items and related per share amounts
together with net cash. EBITDA is net income per our consolidated
financial statements adjusted for the exclusion of charges for
interest expense, net, income taxes, depreciation, and
amortization. Income before income taxes, net income and diluted
EPS, excluding special items, per our consolidated financial
statements are adjusted for the exclusion of foreign currency
exchange (gains)/losses, amortization of acquired intangible
assets, legacy costs of closed operations, acquisition related
costs and adjustment of income tax provisions. Net cash is cash and
cash equivalents less total debt. Reconciliations of these non-GAAP
financial measures to their most directly comparable GAAP financial
measures are provided herein and in the schedules below. The
Company believes that such non-GAAP financial measures provide
useful information to investors and may assist them in evaluating
the Company’s underlying performance and identifying operating
trends. In addition, these non-GAAP measures address questions the
Company routinely receives from analysts and investors and the
Company has determined that it is appropriate to make this data
available to all investors. While the Company believes that such
measures are useful in evaluating the Company’s performance,
investors should not consider them to be a substitute for financial
measures prepared in accordance with GAAP. Also, these non-GAAP
financial measures may differ from similarly titled non-GAAP
financial measures used by other companies and do not provide a
comparable view of the Company’s performance relative to other
companies in similar industries. Management uses adjusted EPS (the
most directly comparable GAAP financial measure for which is GAAP
EPS) and adjusted net income and EBITDA (the most directly
comparable GAAP financial measure for which is GAAP net income) to
allocate resources and evaluate the performance of the Company’s
operations. Management believes the most directly comparable GAAP
financial measure is GAAP net income and has provided a
reconciliation of EBITDA and net income excluding special items,
and related per share amounts, to GAAP net income herein and in the
schedules below.
About Innospec Inc.
Innospec Inc. is an international specialty
chemicals company with approximately 2,100 employees in 25
countries. Innospec manufactures and supplies a wide range of
specialty chemicals to markets in the Americas, Europe, the Middle
East, Africa and Asia-Pacific. The Performance Chemicals
business creates innovative technology-based solutions for our
customers in the Personal Care, Home Care, Agrochemical, Mining and
Industrial markets. The Fuel Specialties business specializes in
manufacturing and supplying fuel additives that improve fuel
efficiency, boost engine performance and reduce harmful emissions.
Oilfield Services provides specialty chemicals to all elements of
the oil and gas exploration and production industry.
About QGP Quimica Geral
QGP Química Geral is a leading specialty
chemicals company based in Brazil with approximately 300 employees.
The company develops and manufactures a wide range of specialty
chemicals for the Leather, Agriculture, Home Care, Industrial
Chemicals, Construction and other related markets.
Forward-Looking Statements
This press release contains certain
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements
other than statements of historical facts included or incorporated
herein may constitute forward-looking statements. Such
forward-looking statements include statements (covered by words
like “expects,” “estimates,” “anticipates,” “may,” “could,”
“believes,” “feels,” “plans,” “intends” or similar words or
expressions, for example) which relate to earnings, growth
potential, operating performance, events or developments that we
expect or anticipate will or may occur in the future.
Although forward-looking statements are believed by management to
be reasonable when made, they are subject to certain risks,
uncertainties and assumptions, and our actual performance or
results may differ materially from these forward-looking
statements. Additional information regarding risks,
uncertainties and assumptions relating to Innospec and affecting
our business operations and prospects are described in Innospec’s
Annual Report on Form 10-K for the year ended December 31, 2022,
Innospec’s Quarterly Report on Form 10-Q for the quarter ended
September 30, 2023 and other reports filed with the U.S. Securities
and Exchange Commission. You are urged to review our
discussion of risks and uncertainties that could cause actual
results to differ from forward-looking statements under the heading
"Risk Factors” in such reports. Innospec undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Contacts:
Corbin BarnesInnospec
Inc.+44-151-355-3611corbin.barnes@innospecinc.com
Innospec (NASDAQ:IOSP)
Historical Stock Chart
From Apr 2024 to May 2024
Innospec (NASDAQ:IOSP)
Historical Stock Chart
From May 2023 to May 2024