PQ Group Holdings Inc. (PQG) last week announced signing of a definitive agreement with an affiliate of The Jordan Company, L.P. (“TJC”) to sell Performance Material business. PQG entered into that agreement of selling its assets at a price of $650 million.

PQ Group is a leading integrated and innovative global provider of specialty materials, catalysts and chemicals and services while TJC is a U.S.-headquartered middle-market private equity firm founded in 1982.

The intended sale of Performance Materials at an attractive price is a significant milestone towards company’s strategic goal of “Simpler and Stronger” said Belgacem Chariag, PQ’s Chairman, President and Chief Executive Officer. The company is aiming bringing its portfolio to a position where that will demonstrate high-pace growth rate while reflecting higher margins.

Through its Simpler and Stronger plan, PQG is eventually looking to better focus on its Catalyst and Refining Services businesses that are not only high-growth but also high margin segments. With the focused portfolio, PQG will be well aligned to produce the lightweight polymers and clean fuels in an efficient way. This will leverage the company to offer its technology and services to help customers drive sustainability with products that are likely to be in high demand in near future. The company is also intending exploring strategic alternatives for its Performance Chemicals segment which is also a healthy business having distinct customers and elements than that of company’s Catalyst and Refining Services business.

With its strong cash generation business and expected proceeds from the current agreement, PQG will expand its capital allocation policy further. This will now include special dividends among debt reduction and reinvestment strategies, added Chariag.

The company is expecting utilizing the net proceeds of the transaction along with a part of its existing cash balances to lessen nearly $460 million of its debt while allocating $250 million to a planned special dividend.