Chemical Management
LyondellBasell | February 02, 2024
LyondellBasell and MSI Technology, LLC announced they have entered into an agreement for MSI Technology to serve the LyondellBasell Polybutene-1 (PB-1) resin line into consumer packaging applications for North America. MSI Technology is also the sales representative for the LyondellBasell Plexar product line. The expansion of the relationship is a strategic fit relative to the markets MSI Technology serves today. MSI Technology will use its technical sales approach combined with its current specialty product portfolio to enhance offerings to customers in consumer packaging.
LyondellBasell PB-1 resins are commonly used in consumer packaging applications for easy-open packaging and film modification for seal initiation temperature providing
Broad seal-peel temperature range
Consistent and reproducible peel performance
Adjustable peel force to end-use requirements
Similar initiation and propagation peel force
"Whitening" with "Smooth & Clean" peel surface
Good seal integrity
Easy processability
Usable in blown film, cast film, extrusion coating and sheet extrusion
"At LyondellBasell, we're passionate about creating solutions for everyday sustainable living," said Palmer Giddings, vice president Polymers at LyondellBasell. "Collaborating with MSI Technology on innovative packaging solutions is a major step forward in achieving that goal."
"We are thrilled to expand our collaboration with LyondellBasell," said Brian McCaghy, president of MSI Technology. "The PB-1 resins align perfectly with our mission to provide specialty polymers and solutions to the packaging industry."
The PB-1 resin line is part of MSI Technology's product offerings. The company also provides clients with access to dedicated sales and technical service specialists who provide guidance on technical resin selection to meet customer requirements.
About LyondellBasell
We are LyondellBasell – a leader in the global chemical industry creating solutions for everyday sustainable living. Through advanced technology and focused investments, we are enabling a circular and low carbon economy. Across all we do, we aim to unlock value for our customers, investors and society. As one of the world's largest producers of polymers and a leader in polyolefin technologies, we develop, manufacture and market high-quality and innovative products for applications ranging from sustainable transportation and food safety to clean water and quality healthcare.
About MSI Technology, LLC
MSI Technology specializes in the sales, marketing, and development of specialty polymers. Our product lines include: Plexar tie-layer adhesives (manufactured by LyondellBasell), SPS peelable sealants, and SpeciPurge purging compound. MSI Technology and its sister company, Soarus LLC, are located in Arlington Heights, IL. Soarus markets Soarnol™), ethylene vinyl alcohol copolymer (EVOH), (manufactured by Mitsubishi Chemical Group) into North and Latin America. The two companies together provide sales and technical service for specialty polymers focused on the packaging market.
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Chemical Management
Arcadium Lithium | January 08, 2024
Arcadium Lithium plc announced the completion of the all-stock merger of equals between Allkem and Livent. The new, combined company is a leading global lithium chemicals producer committed to safely and responsibly harnessing the power of lithium to improve people's lives and accelerate the transition to a clean energy future. With roughly U.S. $1.9 billion of combined total revenue in 2022 and a global team of more than 2,600 employees, Arcadium Lithium is one of the largest integrated producers of lithium chemicals in the world.
Paul Graves, Chief Executive Officer of Arcadium Lithium, said: "As one of the leading global producers of lithium chemicals, Arcadium Lithium has the resources, scale and expertise to meet the growing needs of our rapidly changing industry. We are a leader in every major lithium extraction process – from hard rock mining to conventional pond and DLE-based brine processing – and vertically integrated, from resource to chemical manufacturing, in strategic locations around the world. This will open doors to new opportunities and strengthen our ability to deliver value to our customers, investors, employees and communities."
Mr. Graves continued: "It is a privilege for me to lead this great company forward with such an incredible team. This transformational merger would not have been possible without the hard work and commitment of our integration planning teams over the past months. I want to thank them and all of our employees around the world for getting us to this position. Together, we are launching an exciting new company that combines the strengths and storied legacies of two incredible organizations, both with an wavering commitment to safe, responsible and sustainable operations. We look forward to building on this strong foundation and leading our industry forward."
Arcadium Lithium ordinary shares will begin trading today on the NYSE under the ticker "ALTM." Arcadium Lithium also maintains a foreign exempt listing on the ASX (via the issue of CHESS Depositary Instruments (CDIs) to Allkem shareholders) and will commence trading on a normal settlement basis on the ASX under the ticker "LTM" at 10:00am (AEDT) on January 5, 2024. Allkem shareholders received either: (a) one Arcadium Lithium ASX listed CDI; or (b) one Arcadium Lithium NYSE listed share depending where they resided and what election (if any) they had made for each Allkem ordinary share held, except for shareholders in certain ineligible jurisdictions, who will receive cash proceeds from the sale of the Arcadium Lithium CDIs in lieu of such CDIs after closing. Livent shareholders received 2.406 Arcadium Lithium NYSE listed ordinary shares for each Livent share held.
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Chemical Management
APA Corporation | January 04, 2024
APA Corporation and Callon Petroleum Company have entered into a definitive agreement under which APA will acquire Callon in an all-stock transaction valued at approximately $4.5 billion, inclusive of Callon’s net debt. Under the terms of the transaction, each share of Callon common stock will be exchanged for a fixed ratio of 1.0425 shares of APA common stock. The transaction is expected to be accretive to all key financial metrics and add to APA’s inventory of high quality, short-cycle opportunities. Callon’s assets provide additional scale to APA’s operations across the Permian Basin, most notably in the Delaware Basin, where Callon has nearly 120,000 acres. On a pro forma basis, total company production exceeds 500,000 BOE per day and enterprise value increases to more than $21 billion.
Key Highlights
Combination of Callon’s Delaware-focused footprint with APA’s Midland-focused footprint provides scale and balance in the Permian Basin;
APA’s oil-prone acreage in the Midland and Delaware Basin combined will increase by more than 50% following the transaction;
Expected to be accretive on key financial and value metrics;
Estimated overhead, operational and cost-of-capital synergies to exceed $150 million annually; and
Additional scale anticipated to improve credit profile; pro forma balance sheet will remain strong with leverage at 1.1x net debt / adjusted EBITDAX.
Management Commentary
“This transaction is aligned with APA’s overall portfolio strategy and fits all the criteria of our disciplined approach to evaluating external growth opportunities. Callon has built a strong portfolio in the Permian Basin that is complementary to our existing Permian assets and rounds out our opportunity set in the Delaware,” said John J. Christmann IV, APA’s CEO and president. “The acquisition is accretive and unlocks value for both shareholder bases, as increased scale will enable us to realize significant overhead and cost-of-capital synergies. The pro forma footprint in the Permian will also create opportunities to capture meaningful operating synergies.”
“We are very proud of the significant steps we have taken to enhance Callon’s asset base, operational performance and balance sheet over the past several years,” said Joe Gatto, Callon’s president and CEO. “This combination with APA now provides for an enhanced value proposition for our shareholders built on their depth of experience and strong execution in the Permian Basin, flexibility for increased capital allocation, and ongoing delineation and optimization efforts. Importantly, I would like to personally thank each and every Callon employee for their role in building this company. I am very proud of this team and what we have achieved together.”
Combined Permian Asset Position and Preliminary 2024 Planned Activity
Pro forma average daily Permian Basin production was 311 Mboe/d in 3Q 2023, which represents a 48% increase from APA’s Permian Basin production on a standalone basis. APA's oil production as a percentage of BOE’s in the Permian increases from approximately 37% to 43% in 3Q 2023, on a pro forma basis.
APA will provide additional activity plans and details post closing.
Pro Forma APA Positioning
“APA has a proven ability to deliver strong results from its unconventional assets in the Permian Basin, and we look forward to building on the progress that the team at Callon has made within its asset base. This transaction is aligned with our strategy of maintaining and growing a diversified portfolio, underpinned by large-scale core areas of operation while continuing to build a portfolio of medium and longer-term exploration-driven development opportunities,” Christmann said.
Following the closing, the company’s worldwide pro forma production mix will be approximately 64% U.S. / 36% international.
APA’s global portfolio includes ongoing development on large-scale legacy assets in the U.S. and Egypt. The company is also advancing a FEED process for a large-scale FPSO development offshore Suriname. In addition to current production and development activities across the globe, APA maintains a differentiated exploration portfolio, which includes newly acquired large-scale blocks offshore Uruguay and onshore state-land leases in Alaska.
About APA
APA Corporation owns consolidated subsidiaries that explore for and produce oil and natural gas in the United States, Egypt and the United Kingdom and that explore for oil and natural gas offshore Suriname. APA posts announcements, operational updates, investor information and press releases on its website, www.apacorp.com. Additional details regarding Suriname, ESG performance and other investor-related topics are posted at investor.
About Callon Petroleum
Callon Petroleum Company is an independent oil and natural gas company focused on the acquisition, exploration and sustainable development of high-quality assets in the Permian Basin in West Texas.
Pro forma enterprise value is derived from the addition of each company’s market capitalization based on closing stock prices on 1/3/24, plus the net debt of each company as of 9/30/23.
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Products and Technologies
Relevant Industrial | January 09, 2024
Relevant Industrial, LLC a leader in value-added distribution and service for instrumentation and automation, rotating equipment, valve, purification, and thermal equipment solutions, announced the acquisition of CHEMFLOW Products and its subsidiaries, CHEMSeal Couplings and ChlorineValves.com (CHEMFLOW).
CHEMFLOW is a leading value-added distributor and manufacturers' representative specializing in precision-engineered Flow Control products for Chemical services. With over 75 years of combined expertise, CHEMFLOW has brought together the highest quality manufacturers of valves, automation, breakaway couplings, safety shutdown systems, and hoses, affording customers specially designed solutions meeting stringent industry standards for hazardous chemical bulk transfer in the safest possible way. CHEMFLOW brings an unmatched expertise in packaging a full range of products and services designed to improve reliability, enhance safety and environmental impact, and minimize downtime.
Relevant Industrial's strategic acquisition of CHEMFLOW Products aligns seamlessly with its commitment to delivering comprehensive and cutting-edge solutions to clients across various industries. This move enhances Relevant Industrial's portfolio, allowing the company to offer a broader range of services and products to its clientele, as well as offer Relevant's unique set of industrial automation solutions to CHEMFLOW's strong customer base.
John Carte, CEO of Relevant Industrial, expressed enthusiasm about the acquisition, stating, "The addition of CHEMFLOW Products to the Relevant Industrial family is a significant step forward in our mission to provide top-tier solutions to our customers. CHEMFLOW's extensive experience and proficiency in Flow Control products for hazardous chemicals complement our capabilities. We are confident that this acquisition will both benefit our customers and contribute to the continued growth and success of Relevant Industrial."
Mike Johnson, CEO of CHEMFLOW Products, shared his perspective on the collaboration, stating, "We are thrilled to join forces with Relevant Industrial. This partnership represents a strategic alignment of values, expertise, and commitment to customer satisfaction. Together, we look forward to delivering innovative solutions and unparalleled value to our customers." As part of this collaboration, Mike will transition to the role of Vice President of Chlor-alkali Business Development within the dynamic CHEMFLOW/Relevant team. In this capacity, he will leverage his extensive industry knowledge and strong leadership skills to lead initiatives aimed at expanding Relevant Industrial's footprint in the chlor-alkali sector.
CHEMFLOW Products and its subsidiaries will become an integral part of Relevant Industrial, contributing to the company's expanded workforce of over 450 employees. The combined entity will operate from a total of 30 strategic locations, further adding to existing customer service capabilities and extending its reach across the majority of the lower 48 states. With an OEM status that provides a global reach, Relevant Industrial is poised to further strengthen its position as an industry leader.
This strategic acquisition is anticipated to create collaborative dynamics that will not only benefit customers, partners, and employees but also propel Relevant Industrial and CHEMFLOW Products into a new era of mutual growth and innovation. The powerful combination of expertise and resources between Relevant Industrial and CHEMFLOW Products opens new horizons for both companies, fostering accelerated customer service, deeper chemical industry capabilities, and enhanced technical expertise.
About CHEMFLOW
CHEMFLOW Products LLC, celebrated for its unwavering commitment to "SOLUTIONS WITH INTEGRITY," functions as a Manufacturers' Representative Company specializing in Flow Control products designed for applications in Chemical services. With a focal point on Hazardous Chemicals, the company exhibits distinct expertise in various domains, including Chlor-akali, AgChem, Vinyls, Urethanes, Refrigerants, Polysilicon, Pigments, and HF Alkylation. A distinguished leader in Flow Control solutions for hazardous chemicals, CHEMFLOW has been a stalwart in serving industries for over 15 years. Their specialization encompasses applications involving Chlorine, Chlor-akali, AgChem, Vinyls, Urethanes, Refrigerants, Polysilicon, Pigments, and HF Alkylation, showcasing unparalleled proficiency in specialty valve applications, safety shutdown systems, bulk transfer hose & coupling, and sampling valves.
About Relevant Industrial
Relevant Industrial, LLC, is a leading value-added distribution channel serving mission-critical applications across diverse industries. Founded in 1965 as Wilson-Mohr, today Relevant is a dynamic partner providing expert solutions in instrumentation and automation, rotating equipment, valves and valve actuation, purification, and thermal equipment. Relevant Industrial brings together the finest problem-solvers in the world: trained technicians, engineers, designers, and experts in a dozen other crafts focused on finding answers and delivering results. We sell parts and services, but our mission goes beyond that; we help customers realize new and better ways to operate more efficiently. Every solution we deliver is specialized and customized for each demanding situation a client presents to us.
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