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.
"This acquisition accelerates Solvay's ongoing transformation towards an innovative chemical solution provider focused on high growth and strong margin businesses with a more balanced geographical and market presence," said Jean-Pierre Clamadieu, Chief Executive Officer of Solvay.
"Our expansion in the energy sector builds on our strategy to provide differentiated solutions addressing the sustainability challenges that society faces with an increasing number of consumers and scarce resources."
Founded in 2002 and headquartered in Paso Robles, California, 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 KT, 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.
Chemlogics's enterprise value represents a multiple of 10.7x last-twelve-months EBITDA, and 8.7x including tax benefits.
Although the acquisition will be financed with available cash, Solvay intends to issue hybrid bonds for approximately €1 billion which will further strengthen the Group's balance sheet ahead of its refinancing of debt maturities from 2014 onwards. The acquisition will be cash and EPS accretive in the first year.
The completion of the transaction, expected before the end of this year, is subject to customary closing conditions, including U.S. anti-trust clearance.
| On 21st Oct 2021
Foreign direct investment (FDI) into the Chinese mainland, in actual...
Vietnam and Singapore should further optimise free trade agreements...
| On 20th Oct 2021
Scientists in Philippines have developed greener technologies to...
National Institute of Fashion Technology
Campus placements are low due to lockdowns
Good tidings expected for textile industry
Sustainable and eco-friendly fibres remain in the minority
Akram Tariq Khan
E-commerce brand YourLibaas meaning "garment or attire" in Udru, was...
Headquartered in Apt, South of France, Delta Plus designs, manufactures...
Miko Srl, a subsidiary of US-based Sage Automotive Interiors and a member...
Hula Global, a leading isolation gown manufacturer in India, has been...
MIP is a manufacturer and distributor of high-performance textiles and...
<div>RocketLife, an award-winning developer of breakthrough visual...
Designer <b>Suman Nathwani</b> talks about her journey of opening a...
Ramya Rao & Kavea R Chavali
<div>The journey of Kalaneca (kala-Art, Neca- Nikaah) formally began in...
Purple Style Labs
Late Indian fashion designer Wendell Rodricks, is known for his...
Letter to Editor
Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.
Subscribe today and get the latest information on Textiles, Fashion, Apparel.