Clariant to acquire Kel-Tech and X-Chem
Swiss firm Clariant has signed deals to purchase two US-based companies, comprising biotech firm X-Chem, and Kel-Tech, a manufacturer of specialty chemicals for drilling applications in the oil and gas industry.
Financial details of the deals have not been disclosed.
The acquisition of the two oilfield production chemicals business will strengthen Clariant's North American oilfield production chemicals business.
It is also expected to add approximately $200m of sales, as well as personnel, technology and expertise to its existing activities in North America.
Clariant CEO Hariolf Kottmann said: “It is part of our global strategy to seize business opportunities in key markets with excellent future prospects through innovations and bolt-on acquisitions.
“Both of these acquisitions allow us to strengthen our position in one of the world's largest specialty chemicals markets, to benefit from the strong, innovation-driven growth perspective of the oil services industry in North America and are accretive to our earnings from year one on.”
The company anticipates that the new acquisitions to accelerate the growth of its business unit Oil & Mining Services (OMS) as a leading provider of oilfield production chemicals in the region.
The effective closing date of both acquisitions is 1 October, and they are financed in cash.
Clariant business unit Oil & Mining Services global head John Dunne said: “The acquisitions are a significant step towards strengthening our footprint in North America.
“With this we will offer customers a stronger and more extensive product offering with customised products and solutions, while expanding our customer base significantly and gaining access to strategic oil-producing basins.
“Both Kel-Tech and X-Chem are well-run businesses with complementary operational efficiencies, which we can immediately incorporate into our existing business and combine with our state-of-the-art technology and R&D.”
The purchase of Kel-Tech from Arsenal Capital Partners has been agreed and received regulatory clearance, while the acquisition of X-Chem from NCH has also received regulatory clearance.