Jan 5 2006
Hercules Incorporated today announced an agreement to purchase the guar and guar derivative manufacturing business of Benchmark Polymer Products, L.P., a subsidiary of Benchmark Performance Group, Inc. (“Benchmark”). Under terms of the agreement, Aqualon, a business unit of Hercules Incorporated, will acquire the Dalton, Georgia production facility for $20 million plus a provisional future earn out and receive an equity position in Benchmark.
Aqualon currently supplies a portfolio of water soluble polymers and technology to the global oil and gas industry for applications in drilling, cementing, completion, and fracturing. “This investment is consistent with Aqualon’s strategy to expand its presence in the energy industry and leverage the full portfolio of Aqualon products,” said Craig Rogerson, President and Chief Executive Officer of Hercules. “The oil and gas industry and in particular, the stimulation of natural gas wells via hydraulic fracturing, is projected to continue a strong, long-term growth trend.”
“As a result of this transaction, Aqualon also expects to increase capacity utilization of its existing guar and guar derivative production facility in Kenedy, Texas,” added Mr. Rogerson. In addition to the oil and gas sector, Aqualon’s guar gum and guar derivatives are widely used in food, personal care, and industrial markets.