Clariant and Mumbai-based Dorf Ketal, two of the world’s leading specialty chemical products and services companies, have today announced a definitive agreement for Dorf Ketal to acquire Clariant’s North American (NORAM) Land Oil business, a provider of chemical technologies and services to the North American oil and gas industry.
The transaction announced today is subject to regulatory and other customary closing conditions and is expected to be finalized during the first quarter of 2023.
Clariant’s NORAM Land Oil business, which posted 2021 revenues of USD $113 million, represents an exciting growth opportunity for Dorf Ketal.
Once completed, 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.
“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.”
“The divestment of the North American Land Oil business is another logical step in repositioning Clariant’s portfolio towards true specialty chemicals and in our sustainability transformation journey. With its strong 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 our employees, customers, and other stakeholders”, said Conrad Keijzer, CEO at Clariant.
Ernst & Young India advised Dorf Ketal on this transaction.
Dorf Ketal has scaled up from a mere $ 30 million turnover in oilfield chemical business in 2018-19 to touching almost $ 275 million in revenues.
The ramp up in such a short period of time has been courtesy organic growth pushed by research driven pathbreaking products and a well crafted acquisitions strategy.
Dorf Ketal has now become the largest oilfield chemicals and service company in Asia. It competes with global conglomerates like Baker Hughes and ChampionX.
