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In a sweeping move to streamline operations and boost financial flexibility, Albemarle Corp. announced Monday that it will sell a controlling 51% stake in its refining catalyst subsidiary Ketjen Corp. to KPS Capital Partners, a private equity powerhouse advised by Paul Weiss Rifkind Wharton & Garrison LLP.

The dual transaction—guided by K&L Gates LLP for Albemarle—will also include the sale of Albemarle’s 50% interest in its Eurecat joint venture with Ketjen to French energy company Axens SA, bringing the company pre-tax proceeds of approximately $660 million.

Based in Houston, Texas, Ketjen manufactures advanced catalyst solutions that help transform crude oil and renewable feedstocks into fuels and chemicals used across transportation, petrochemicals, construction, and agriculture.

Once the deal closes, Albemarle will retain a 49% stake in Ketjen while KPS Capital Partners will take majority control and operational leadership.

A Strategic Shift Toward Core Strengths

Albemarle Chairman and CEO Kent Masters described the deal as a pivotal moment in the company’s transformation.

“These transactions align with Albemarle's strategic priorities to focus on our core businesses and competencies, improve financial flexibility, and streamline operations,” Masters said.

He added that retaining a minority stake demonstrates Albemarle’s confidence in Ketjen’s potential for earnings growth and value creation under KPS leadership.

Under the terms of the agreement, KPS will hold a majority on Ketjen’s board and assume full operational control. Meanwhile, Albemarle will maintain 100% ownership of Ketjen’s performance catalyst solutions business and its Pasadena, Texas, facility, ensuring continued presence in key catalyst markets.

KPS to Drive Growth and Innovation

Raquel Vargas Palmer, managing partner at KPS, expressed enthusiasm for the acquisition, calling it an opportunity to harness the firm’s “decades of global manufacturing expertise” to strengthen Ketjen’s independence and fuel expansion.

“We will create an entrepreneurial culture centered on innovation and continuous improvement while providing strategic support and capital to accelerate the company’s growth,” Palmer said.

Michael Simmons, president of Ketjen, echoed that optimism, highlighting KPS’s reputation for revitalizing industrial and specialty materials businesses.

“We are confident they are the right partner to support our long-term growth,” Simmons said, adding that the Ketjen team is “excited to embark on this next chapter as an independent company.”