Specialty chemical products and services company Dorf Ketal on Thursday said it has signed a definitive agreement to acquire Clariant’s North American (NORAM) Land Oil business for $14.5 million.
The transaction is expected to be finalized during the first quarter of 2023.
Dorf Ketel is one of the largest oilfield chemicals and service companies in Asia and competes with global conglomerates like Baker Hughes, and ChampionX, it said in a statement.
“This acquisition will bring additional strategic assets, innovative new technology, talented people, and strong customer relationships into Dorf Ketal,” said Sudhir Menon, Chairman of Dorf Ketal Chemicals India Private Limited.
“Upon completion, it will enable our continued growth in North America – a significant and growing market for energy services, further aligning with our global focus and commitment to providing innovative services throughout the energy sector,” he added.
The acquisition will include all the assets of Clariant’s NORAM Land Oil business, including a team of 170 employees in North America, a technology portfolio of more than 40 patent families, and manufacturing units located in Bakersfield, California; Midland, Texas; and Black Hills, Texas producing more than 2,000 formulations for drilling, production, and stimulation.
Dorf has been pursuing inorganic growth and has made several transactions. It has grown from a $30 million turnover in the oilfield chemical business in 2018-19 to an almost $275 million turnover business. Through ramp up in such a short period with organic growth supported by research-driven pathbreaking products and inorganic growth by acquiring companies, a statement noted.
Conrad Keijzer, CEO at Clariant said the divestment of the North American Land Oil business is a logical step in repositioning Clariant’s portfolio towards true speciality chemicals. With its reputation as a supplier of premium oilfield chemical products and services, its geographical presence, and its solid customer relationships, Dorf Ketal is the right owner for the combined business, for employees, customers, and other stakeholders.
Ernst & Young India advised Dorf Ketal on this transaction.