Solvay to acquire Chemlogics for $1.345 billion

As part of its ongoing transformation, Solvay has signed an agreement to acquire privately-held Chemlogics for a total cash consideration of $1.345 billion. Adding the US-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.
 
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"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. 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,” said Jean-Pierre Clamadieu, CEO, Solvay.
 
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 US and include three manufacturing sites with annual capacity exceeding 300 KT, eight formulation centres and six research and technical facilities.
 
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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 US complements Novecare's global customer base. Together, Novecare and Chemlogics will have a significant share of the dynamic $8 billion US oil and gas exploration and production market.