- Mergers & Acquisitions
Dorf Ketal completes acquisition of Clariant business unit
Dorf Ketal, a specialty chemical company headquartered in Mumbai, India, has completed its acquisition of Clariant’s North American (NORAM) Land Oil business.
The divestment is a further step to structurally improve Clariant’s portfolio and sustainability profile, while the acquisition represents a significant growth opportunity for Dorf Ketal and DK Energy Services.
Clariant is a focused, sustainable, and innovative specialty chemical company, based in Muttenz, Switzerland. Clariant’s North American Land Oil business is a provider of chemical technologies and services to the North American oil and gas industry and generated sales of USD115 million in 2022. After seeing strong growth in 2018 and 2019, the global oil industry entered a crisis in 2020. This prompted a strategic review which concluded that the NORAM Land Oil business is primarily service-oriented with a limited focus on sustainable solutions and will not reach profitability levels expected for a specialty chemicals portfolio.
The transaction includes all the assets of Clariant’s NORAM Land Oil business, a team of more than 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 chemical formulations for drilling, production, and stimulation.
“Clariant is a true specialty chemicals company whereas the North American Land Oil business is primarily a distribution and service business,” said Conrad Keijzer, chief executive officer at Clariant. “We are therefore glad that, with Dorf Ketal, we have found the right owner for our customers and our employees. I want to express my gratitude to our former colleagues and wish them all the best in their new environment.”
Dorf Ketal has formed subsidiaries DK Energy Services LLC in the United States and DK Energy Services Ltd. in Canada from the combination of its current North American business and the acquired Clariant assets and employees. DK Energy Services will be headquartered in The Woodlands, Texas, U.S.A.
“We’re excited to welcome Clariant’s North American team to the Dorf Ketal family and form DK Energy Services,” said Sudhir Menon, chairman of Dorf Ketal Chemicals India Private Limited. “This acquisition allows us to further build a foundation in North America that delivers more complete and competitive energy oilfield solutions to customers. We will bring the local application of our global innovation and technology to provide solutions that will safeguard our customers’ assets.”
“Continuing our more than 30-year track record of growth, we are committed to expanding our presence in the North American basins and shales where our customers are located,” said Amilton Tronchin, CEO of Dorf Ketal Chemicals. “We aim to be trusted partners and problem solvers for our customers by bringing them our best-in-the-industry technology and innovation at the best value.”
Ernst & Young India advised Dorf Ketal on this transaction.