Dorf To Purchase North American Land Oil Business From Clariant For $14.5 million
- ByStartupStory | October 28, 2022
Dorf Ketal, a provider of speciality chemical goods and services, announced on Thursday that it has signed a binding contract to buy Clariant’s North American (NORAM) Land Oil division for $14.5 million. It is anticipated that the deal would be completed in the first quarter of 2023.
According to a statement from the company, Dorf Ketel is one of the biggest oilfield chemicals and service providers in Asia and competes with major multinational corporations like Baker Hughes and ChampionX.
According to Sudhir Menon, Chairman of Dorf Ketal Chemicals India Private Limited, “This acquisition will bring more strategic assets, innovative new technology, brilliant people, and strong client ties into Dorf Ketal.”
After it is finished, he stated, “it will enable our continued growth in North America, a significant and expanding market for energy services, further aligning with our worldwide emphasis and commitment to offering cutting-edge services across the energy sector.”
All of Clariant’s NORAM Land Oil business’s assets will be included in the acquisition, including its 170 North American employees, its technology portfolio of more than 40 patent families, and its manufacturing facilities in Bakersfield, Midland, and Black Hills, Texas, which produce more than 2,000 formulations for drilling, production, and stimulation.
Dorf has pursued inorganic growth and completed a number of deals. The oilfield chemical industry’s turnover increased from $30 million in 2018–19 to over $275 million in 2019–20. By rapidly ramping up with organic growth backed by research-driven ground-breaking goods and inorganic development through company acquisitions, according to a statement.
The divestiture of the North American Land Oil business, according to Clariant CEO Conrad Keijzer, is a logical move towards reallocating Clariant’s portfolio towards speciality chemicals. Dorf Ketal is the ideal owner for the combined firm, for employees, customers, and other stakeholders, due to its reputation as a provider of high-end oilfield chemical products and services, its regional presence, and its strong customer relationships. Dorf Ketal received advice on this deal from Ernst & Young India.
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