Clariant acquires 2 oilfield production chemicals biz in US
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Clariant acquires 2 oilfield production chemicals biz in US

7:41 AM, 14th September 2016
Clariant acquires 2 oilfield production chemicals biz in US
Clariant International headquarters building located in Muttenz, Switzerland. (File photo)

MUTTENZ, SWITZERLAND: Clariant International Ltd has acquired two oilfield production chemicals business, Kel-Tech Inc and X-Chem LLC (both located in US). This acquisition will add approx $200 million of sales, as well as personnel, technology and expertise to its existing activities in North America and accelerates the growth of the company’s business unit oil & mining services (OMS) as a leading provider of oilfield production chemicals in North America.

Clariant will leverage the new companies' brand and innovation to better meet market needs and expand market presence. The effective closing date of both acquisitions is 1 October 2016 and they are financed from cash at hand.

The purchase of Kel-Tech from current owners Arsenal Capital Partners has been agreed and received regulatory clearance. Kel-Tech is a manufacturer and supplier of speciality chemical products for production, field stimulation, and drilling applications throughout onshore US.

In addition, Clariant has agreed to acquire X-Chem, headquartered in Irving, US, from current owner NCH Corporation. This acquisition has also received regulatory clearance. X-Chem's operations are focused on land and offshore US, where it provides speciality oilfield chemicals for the production, completion and stimulation of oil wells, gas wells and pipelines.

"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 speciality 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," said Hariolf Kottmann, CEO of Clariant.

"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," said John Dunne, global head of Clariant's business unit oil & mining services.

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