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Business News/ Companies / Artek buys Kemira’s oil & gas business
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Artek buys Kemira’s oil & gas business

Artek has acquired the asset through its US-based subsidiary Sterling Specialty Chemicals and the deal is expected to close in the first quarter of 2024, subject to customary closing conditions and regulatory approvals

Approximately 250 employees are expected to transfer to Sterling Specialty as part of the transaction. (iStockphoto)Premium
Approximately 250 employees are expected to transfer to Sterling Specialty as part of the transaction. (iStockphoto)

Mumbai: Mumbai-based Artek Group has acquired Finnish chemicals company Kemira’s oil and gas business for $280 million, according to a company statement.

Artek has acquired the asset through its US-based subsidiary Sterling Specialty Chemicals and the deal is expected to close in the first quarter of 2024, subject to customary closing conditions and regulatory approvals.

“The acquisition of a high-quality oil & gas-related portfolio from Kemira is another step in our global vision and growth strategy of becoming a leading specialty chemicals player," said Vishal Goenka, director at Artek Group.

Approximately 250 employees are expected to transfer to Sterling Specialty as part of the transaction.

Artek expects to explore “future growth opportunities" with its existing oil & gas business, Goenka said. Artek has previously been globally acquisitive. Artek has previously been globally acquisitive. In September 2020, Sterling Auxiliaries Pvt. Ltd. and its parent company, Artek Surfin Chemicals Ltd acquired Baker Hughes chemical manufacturing facility in Oklahama. Artek previously acquired Galata Chemicals in 2014.

Kemira Oil & Gas operates plants in Mobile, Columbus and Aberdeen, Mississippi as well as plants in Teesport, UK and Botlek, the Netherlands, which Kemira will continue to operate on behalf of Artek. Sterling and Kemira have entered long-term contract manufacturing agreements, the companies said.

“While there is talk about the world being at ‘peak oil’ today, such oil and gas chemicals have a healthy cash flow and will continue to be fantastic cash businesses for years to come" said Aamit Joshi, MD, Chemicals at Stifel said. Stifel was the advisor for Kemira while EY was one of the advisor to Artek.

“The divestment of the Oil & Gas business will clarify our focus on sustainability and our strategic priorities: we want to expand in water, build a leading renewables portfolio and digital services business. This move strengthens our capability to look for growth within our water treatment and Pulp & Paper businesses and also to explore new growth opportunities," said Petri Castrén, Interim President and CEO at Kemira.

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Published: 06 Dec 2023, 10:49 PM IST
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