CHARLOTTE, N.C., Aug. 29,
2022 /PRNewswire/ -- Albemarle Corporation (NYSE:
ALB), a leader in the global specialty chemicals industry, today
announced that as a result of its strategic review of the business,
Albemarle has chosen to retain its
Catalysts business under a separate, to-be-named entity and wholly
owned subsidiary of Albemarle.
This structure is intended to allow the Catalysts business to
respond to unique customer needs and global market dynamics more
effectively while also achieving its growth ambitions.
In response to the accelerating energy transition, the Catalysts
business announced in September 2021
a retooled strategy focused on new geographies in India and Southeast
Asia, attractive crude-to-chemical technologies, renewable
diesel to serve a larger hydrotreated vegetable oil market, and
pyrolysis oil treatment for bio-oil (synthetic) fuel. Albemarle simultaneously announced a strategic
review of the Catalysts business to determine the best way to
support its strategy for growth.
During the review, Albemarle
considered a wide range of value creation opportunities for the
Catalysts business including a joint venture with a partner, a
spin-off or sale, or Albemarle
retaining the business. The company conducted due diligence with
multiple parties, including strategic and financial sponsors, but
in the end determined that the best value for Albemarle was to hold the business as a
separate entity.
"We are confident that there is significant value in the
Catalysts business that can address the needs of the evolving
global market and create growth for customers, employees, and our
shareholders," said Albemarle CEO Kent
Masters. "We believe that retaining the business under this
new structure is the best path to that outcome."
The process to move the Catalysts business to its new legal
structure is underway and is expected to be finalized in
approximately 18 months. The business will continue to be led by
Raphael Crawford, current president
of the Catalysts global business unit.
About Albemarle
Albemarle Corporation (NYSE: ALB) is a global specialty chemicals
company with leading positions in lithium, bromine, and refining
catalysts. We think beyond business as usual to power the potential
of companies in many of the world's largest and most critical
industries, such as energy, electronics, and transportation. We
actively pursue a sustainable approach to managing our diverse
global footprint of world-class resources. In conjunction with our
highly experienced and talented global teams, our deep-seated
values, and our collaborative customer relationships, we create
value-added and performance-based solutions that enable a safer and
more sustainable future.
We regularly post information to www.albemarle.com, including
notification of events, news, financial performance, investor
presentations and webcasts, non-GAAP reconciliations, SEC filings
and other information regarding our company, our businesses, and
the markets we serve.
Forward-Looking Statements
Some of the information presented in this press release, including,
without limitation, information related to the timing of
restructuring the Catalysts business, the benefits and
opportunities associated with the restructuring of the Catalysts
business, anticipated return on opportunities, and including all
information relating to matters that are not historical facts may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Actual results
could differ materially from the views expressed. Factors that
could cause Albemarle's actual
results to differ materially from the outlook expressed or implied
in any forward-looking statement include, without limitation:
changes in economic and business conditions; changes in financial
and operating performance of its major customers and industries and
markets served by it; the timing of orders received from customers;
the gain or loss of significant customers; fluctuations in lithium
market pricing, which could impact our revenues and profitability
particularly due to our increased exposure to index-referenced and
variable-priced contracts for battery grade lithium sales; changes
with respect to contract renegotiations; potential production
volume shortfalls; competition from other manufacturers; changes in
the demand for its products or the end-user markets in which its
products are sold; limitations or prohibitions on the manufacture
and sale of its products; availability of raw materials; increases
in the cost of raw materials and energy, and its ability to pass
through such increases to its customers; technological change and
development, changes in its markets in general; fluctuations in
foreign currencies; changes in laws and government regulation
impacting its operations or its products; the occurrence of
regulatory actions, proceedings, claims or litigation (including
with respect to the U.S. Foreign Corrupt Practices Act and foreign
anti-corruption laws); the occurrence of cyber-security breaches,
terrorist attacks, industrial accidents or natural disasters; the
effect of climate change, including any regulatory changes to which
it might be subject; hazards associated with chemicals
manufacturing; the inability to maintain current levels of
insurance, including product or premises liability insurance, or
the denial of such coverage; political unrest affecting the global
economy, including adverse effects from terrorism or hostilities;
political instability affecting our manufacturing operations or
joint ventures; changes in accounting standards; the inability to
achieve results from its global manufacturing cost reduction
initiatives as well as its ongoing continuous improvement and
rationalization programs; changes in the jurisdictional mix of its
earnings and changes in tax laws and rates or interpretation;
changes in monetary policies, inflation or interest rates that may
impact its ability to raise capital or increase its cost of funds,
impact the performance of its pension fund investments and increase
its pension expense and funding obligations; volatility and
uncertainties in the debt and equity markets; technology or
intellectual property infringement, including cyber-security
breaches, and other innovation risks; decisions it may make in the
future; future acquisition and divestiture transactions, including
the ability to successfully execute, operate and integrate
acquisitions and divestitures and incurring additional
indebtedness; continuing uncertainties as to the duration and
impact of the coronavirus (COVID-19) pandemic; performance of
Albemarle's partners in joint
ventures and other projects; changes in credit ratings; and the
other factors detailed from time to time in the reports
Albemarle files with the SEC,
including those described under "Risk Factors" in Albemarle's most recent Annual Report on Form
10-K any subsequently filed Quarterly Reports on Form 10-Q. These
forward-looking statements speak only as of the date of this press
release. Albemarle assumes no
obligation to provide any revisions to any forward-looking
statements should circumstances change, except as otherwise
required by securities and other applicable laws.
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SOURCE Albemarle Corporation