SCF Partners Acquires Flowchem, Val-Tex, and Sealweld, Leading Providers of Specialized Solutions for Midstream Infrastructure Operations and Maintenance

Rhea-AI Summary

SCF Partners, Inc. acquires Entegris Inc.'s Pipeline and Industrial Materials business, consisting of Flowchem, Val-Tex, and Sealweld. The businesses provide specialized chemicals and products for midstream infrastructure, optimizing efficiency, reducing costs, and emissions. Flowchem focuses on drag reducing agents, Val-Tex and Sealweld offer valve maintenance products. The partnership aims for value creation and accelerated growth.

Insights

Financial Analyst

The acquisition of the Pipeline and Industrial Materials business by SCF Partners from Entegris Inc. represents a strategic move that could potentially influence the financial dynamics of both companies. From a financial perspective, such acquisitions are often pursued to achieve synergies, diversify product offerings and penetrate new markets. The PIM business, with its specialized chemical products, could offer SCF a competitive edge in the midstream infrastructure market.

Investors should monitor the post-acquisition integration process, as it can significantly impact the financial outcomes. The effectiveness of this integration, coupled with the execution of the strategic growth plan mentioned by Flowchem's CEO, could dictate the future revenue streams and profitability of the business. SCF's experience in the energy and infrastructure sectors could be instrumental in optimizing the acquired assets, which may lead to improved financial metrics and shareholder value in the long term.

Market Research Analyst

The acquisition highlights the growing importance of efficiency and environmental considerations in the energy sector. Products like drag reducing agents (DRA) and valve maintenance products that reduce energy consumption and emissions are increasingly in demand due to regulatory pressures and a societal shift towards sustainability. This trend is expected to continue and companies that provide solutions to these issues are well-positioned in the market.

Furthermore, the mention of aging midstream infrastructure suggests a significant market opportunity for maintenance, repair and efficiency improvements. As infrastructure continues to age, the demand for services and products offered by Flowchem, Val-Tex and Sealweld is likely to grow, potentially increasing the market share and revenue for SCF Partners post-acquisition.

Environmental Policy Expert

The environmental implications of this acquisition are noteworthy, especially considering the products offered by the PIM business. The use of DRAs and efforts to reduce fugitive emissions align with global environmental policy trends aimed at reducing greenhouse gas emissions. The proactive stance of these companies in addressing environmental concerns not only helps in regulatory compliance but also enhances their reputation among environmentally conscious stakeholders.

As environmental policies become more stringent, the value proposition of companies that contribute to sustainability increases. This acquisition could place SCF in a favorable position to capitalize on potential incentives or avoid penalties associated with environmental regulations, thereby impacting its long-term financial sustainability and competitive positioning within the industry.

HOUSTON--(BUSINESS WIRE)-- SCF Partners, Inc. (“SCF”) is pleased to announce its acquisition of the Pipeline and Industrial Materials business (“PIM”) from Entegris Inc. (Nasdaq: ENTG), a leading supplier of advanced materials and process solutions for the semiconductor and other high-technology industries. The PIM business manufactures highly specialized chemicals and other products for midstream infrastructure, and consists of three businesses: Flowchem, Val-Tex, and Sealweld.

Flowchem, Val-Tex, and Sealweld provide products and services to optimize efficiency and reduce costs and emissions for midstream infrastructure (Photo: Flowchem)

Founded in 2001 and based in Houston, Texas, Flowchem is a leading supplier of drag reducing agents (“DRA”), which optimize pipeline flow and increase throughput capacity. Use of Flowchem DRA enables infrastructure operators across the globe to reduce energy consumed in pumping operations, which in turn reduces both costs and associated greenhouse gas emissions.

Val-Tex and Sealweld, founded in 1962 and 1969 respectively, are trusted providers of high-quality valve maintenance products, including sealants, lubricants, fittings, and injection equipment, as well as maintenance and emergency leak repair services. Their products play an important role in not only ensuring safety and performance, but also helping to reduce fugitive emissions.

Flowchem's CEO, Jon Blair, commented, "We are thrilled to partner with SCF, and believe this partnership will be a source of enormous value creation for both our customers and our people. Our strategic growth plan will now accelerate under a new and focused board with significant energy and infrastructure experience. SCF’s track record of success in our industry gives me confidence as we look to the future."

Dan West, Director at SCF Partners, stated, “Flowchem, Val-Tex, and Sealweld have built customer trust over decades of delivering specialized products and services that make infrastructure operations safer and more efficient, while reducing both costs and emissions. Aging midstream infrastructure and rising utilization further augment the need for these solutions. Together with the leadership team, we look forward to creating value in the company’s next chapter of growth.”

About Flowchem, Val-Tex, and Sealweld

Flowchem is a leading supplier of Drag Reducing Agents (DRA) which optimize pipeline flow, increase throughput capacity, and maximize overall profitability of pipeline operations. Flowchem provides flow consultation and turnkey solutions for pipeline applications worldwide. For more information, please visit www.flowchem-dra.com.

Val-Tex, founded in 1962, is one of the industry’s premier providers of high-quality valve maintenance products such as sealants, lubricants, fittings, and injection equipment. Val-Tex’s longstanding commitment to product excellence and customer satisfaction has earned the trust and recommendation of the world’s leading valve manufacturers. To learn more, please visit www.valtex.com.

Sealweld has been providing superior valve care products and services since 1969, with a focus on the safe reduction and elimination of pipeline valve leakage. Decades of experience and development of practical solutions have resulted in high-performing valve care products equally suited to either gas or liquid pipelines. For more information, visit www.sealweld.com.

About SCF Partners

Founded in 1989, SCF provides equity capital and strategic growth assistance to build and grow leading energy service, equipment, and technology companies that operate throughout the world. SCF has invested in more than 80 platform companies and made more than 400 additional acquisitions to develop 18 publicly listed energy service and equipment companies over its history. The firm is headquartered in Houston, Texas, and has offices in Calgary, Aberdeen, and Australia. For more information, please visit www.scfpartners.com.

About Entegris

Entegris is a leading supplier of advanced materials and process solutions for the semiconductor and other high-tech industries. Entegris has approximately 8,000 employees throughout its global operations and is ISO 9001 certified. It has manufacturing, customer service and/or research facilities in the United States, Canada, China, Germany, Israel, Japan, Malaysia, Singapore, South Korea, and Taiwan. Additional information can be found at www.entegris.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240229353660/en/

Paul Bateman

pbateman@scfpartners.com

Source: SCF Partners

FAQ

What businesses are included in the acquisition by SCF Partners, Inc. from Entegris Inc.?

The acquisition includes the Pipeline and Industrial Materials business, consisting of Flowchem, Val-Tex, and Sealweld.

What products and services do Flowchem, Val-Tex, and Sealweld provide?

Flowchem offers drag reducing agents, Val-Tex and Sealweld provide valve maintenance products, including sealants, lubricants, fittings, and injection equipment.

What are the benefits of using Flowchem's drag reducing agents?

Flowchem's drag reducing agents optimize pipeline flow, increase throughput capacity, and reduce energy consumption in pumping operations, leading to cost and greenhouse gas emissions reduction.

What is the goal of the partnership between SCF Partners, Inc. and Flowchem, Val-Tex, and Sealweld?

The partnership aims for value creation, accelerated growth, and providing specialized products and services to make infrastructure operations safer, more efficient, and environmentally friendly.