- Mergers & Acquisitions
Brenntag acquires Gravity’s production chemicals platform
Brenntag, a global market leader in chemicals and ingredients distribution based in Essen, Germany, has acquired Tech Management, a leading solutions provider for proprietary formulations and on-site services directly to operators in the energy sector in the Permian Basin, the largest energy-producing region in North America.
Tech Management is the production chemicals platform of Gravity, a water and power infrastructure company backed by affiliates of Clearlake Capital Group, L.P., an investment firm based in Santa Monica, California, U.S.A.
The acquired business had sales of USD85 million in the financial year 2021. Signing and closing of the transaction took place simultaneously. Financial terms of the transaction were not disclosed.
“The company’s formulation expertise and state-of-the-art laboratory facilities are a welcome addition to Brenntag’s Energy Services business in North America, providing a further pillar to our resilient market offerings in the energy sector and filling a vital support role in a region critical to global energy security,” said Steven Terwindt, a member of the Management Board of Brenntag Group and COO of Brenntag Essentials.
Founded as Hughes Chemical in 2009, Globe Chemical, LLC, doing business as Tech Management, has its headquarters and blending facility located in Odessa, Texas, U.S.A., with 10 additional operating facilities in West Texas, New Mexico and Oklahoma.
“The acquisition represents a strategic opportunity to complement our leadership position in the U.S. while helping our customers produce energy in an efficient and safe manner. Tech Management’s research and support colleagues will provide another center of excellence for innovation for Brenntag,” said Scott Leibowitz, regional president of Brenntag Essentials.
“This transaction represents a strategic step for Gravity as we focus on accelerating growth in our water and power infrastructure businesses, while enabling Tech Management to continue to grow its capabilities under Coastal Chemical and Brenntag,” said Rob Rice, president and CEO of Gravity. “Over the last decade, Tech Management has built a chemical business focused on improving production and maintaining reliability of oil and gas wells for producers. Gravity’s other operations and services will not be impacted by this transaction.”
“There is a strategic fit between Brenntag and Tech Management, and this sale allows Gravity to increase its efforts on its core, growth-focused water logistics and power generation business lines for customers operating primarily in the Permian, the Bakken, and other key basins,” said José E. Feliciano, chairman of Gravity and co-founder and managing partner of Clearlake, and Colin Leonard, partner and managing director of Clearlake.
PPHB, LP acted as the exclusive financial advisor and Vinson & Elkins LLP acted as legal advisor to Gravity and Clearlake.