Local chemical company sold for $1.3 billion
Belgian company buying Bill Frost’s Chemlogics
Global chemical company Solvay announced it is buying the long-time Paso Robles-based Chemlogics for $1.3 billion to expand its offering of chemicals for the oil and gas industry, according to statement from Solvay.
Chemlogics CEO and founder Bill Frost has lived in the area for 30 years and is supporter of the local community. He paid for the Paso Robles Fourth of July fireworks show at Barney Schwartz Park shortly after it opened in 2002 and for many years.
Founded in 2002, Chemlogics has sales of about $500 million and 277 employees, with 17 of them in North County. It was founded and based in Paso Robles, but recently relocated its head office to Atascadero. It has three factories, eight formulation sites and six research hubs. Chemlogics’ products are used to ease friction in drilling. It’s a fast growing industry. Solvay already makes some ingredients used in the products.
Frost, a Cal Poly graduate, will retain an advisory role following the acquisition, according to Bloomberg News. The sale is a way to pass on the company with management largely intact, the report said. With a partner, Frost previously formed Chemron Corp in 1977. By 2002 it had 100 employees and was sold to Lubrizol for about $60 million, according to reports. Lubrizol was later sold to Warren Buffet’s Berkshire Hathaway in 2011.
Solvay is a Belgian chemical company founded in 1863 with about $17 billion in annual revenues. It employs 29,100 people in 55 countries.
Adding Chemlogics to Solvay will create a leader with an extensive portfolio of tailored chemical solutions for the fast-growing oil & gas market, according to a statement from Solvay. The acquisition will create synergies that will enable oilfield companies to safely extract oil and gas while reducing water consumption, it said.
Top stories Oct. 7, 2013