Only on Che.com :: Latest News
October 7, 2013
Solvay to acquire Chemlogics
As part of its ongoing transformation, Solvay S.A. (Brussels, Belgium; www.solvay.com) has signed an agreement to acquire privately-held Chemlogics (Paso Robles, Calif.) for a total cash consideration of $1.345 billion. Adding the U.S.-based company to Solvay's Novecare business unit will create a leader with an extensive portfolio of tailored chemical solutions for the fast-growing oil & gas market, serving stimulation, cementing, production and water management applications.
For Solvay Novecare, this acquisition will yield significant synergies thanks to a comprehensive offering of innovative products and technologies which enables oilfield service players worldwide to competitively and safely extract oil and gas while reducing water consumption. Chemlogics has shown annual double-digit EBITDA growth over the past five years, thanks to a fast-paced innovation model combined with a strong know-how and closeness to customers.
Founded in 2002, Chemlogics reported last-twelve-month sales of around $500 million and has 277 employees. The company serves the needs of the oil-and-gas industry's stimulation and cementing segments. All its assets are located in the U.S. and include three manufacturing sites with annual capacity exceeding 300,000 tons, eight formulation centers and six research and technical facilities.
Chemlogics's expertise in friction reducers, non-emulsifiers and extraction technologies perfectly fit with Solvay Novecare's know-how in surfactants, natural polymers and eco-friendly solvents. In addition, Chemlogics' customer portfolio in the U.S. complements Novecare's global customer base. Together, Novecare and Chemlogics will have a significant share of the dynamic $8-billion U.S. oil-and-gas exploration and production market.
The completion of the transaction, expected before the end of this year, is subject to customary closing conditions, including U.S. anti-trust clearance.