ChampionX Announces Sale of Corsicana, Texas, Chemical Manufacturing Plant

Rhea-AI Summary

ChampionX Corporation (NASDAQ: CHX) has sold its Corsicana, Texas, chemical manufacturing plant to RPM International Inc. This strategic sale aims to optimize ChampionX's global supply chain and enhance the cost structure of its Reservoir Chemical Technologies business. Proceeds from the sale will be directed towards reducing debt and progressing towards leverage targets. The company expressed gratitude to Corsicana employees and intends to maintain a supplier relationship with RPM to support future manufacturing needs.

Positive

• Sale of Corsicana plant allows for optimization of the global supply chain.
• Proceeds from sale will be used to pay down debt, aiding in leverage target achievement.
• Continued supplier agreement with RPM ensures support for manufacturing needs.

Negative

• None.

THE WOODLANDS, Texas, Sept. 07, 2021 (GLOBE NEWSWIRE) -- ChampionX Corporation (NASDAQ: CHX) (“ChampionX” or the “Company”) today announced the sale of its Corsicana, Texas, chemical manufacturing plant to RPM International Inc., a global leader in specialty coatings, sealants, building materials and related services.

“This transaction is mutually beneficial to ChampionX, RPM International Inc., the team at the Corsicana plant and the community in which it operates,” said Sivasankaran “Soma” Somasundaram, President and Chief Executive Officer of ChampionX. “The sale is consistent with our ongoing initiatives to optimize our global supply chain and improve the cost structure in our Reservoir Chemical Technologies business for enhanced flexibility. Proceeds from the sale will be used to pay down debt and make further progress toward our leverage target.”

Deric Bryant, Chief Operating Officer and President, Chemical Technologies, added, “We want to express our sincere appreciation to the Corsicana employees for their contributions to ChampionX over the years, and we believe they have great opportunities ahead. We are excited to be able to continue our strong relationship with the Corsicana team through a supplier agreement with RPM that will continue supporting our manufacturing needs in the future.”

Parks Paton Hoepfl & Brown acted as advisor and Katten Muchin Rosenman LLP acted as legal counsel to ChampionX.

About ChampionX

ChampionX is a global leader in chemistry solutions and highly engineered equipment and technologies that help companies drill for and produce oil and gas safely and efficiently around the world. ChampionX’s products provide efficient functioning throughout the lifecycle of a well with a focus on the production phase of wells. Visit www.championx.com to learn more.

Investor Contact:
Byron Pope – byron.pope@championx.com – 281-602-0094

Media Contact:
John Breed – john.breed@championx.com – 281-403-3751

FAQ

What is the recent announcement from ChampionX regarding CHX-WI?

ChampionX announced the sale of its Corsicana, Texas chemical manufacturing plant to RPM International Inc.

How will the sale of the Corsicana plant impact ChampionX's finances?

Proceeds from the sale will be used to pay down debt, which will help ChampionX progress towards its leverage targets.

What strategic reasons did ChampionX give for selling the Corsicana plant?

The sale is part of ChampionX's initiatives to optimize its global supply chain and improve cost structure.

What is the future relationship between ChampionX and RPM International after the sale?

ChampionX plans to maintain a supplier agreement with RPM to support its future manufacturing needs.