Chemicals producer Verdant Specialty Solutions acquired surfactants manufacturer DeForest Enterprises last week, the company announced. The acquisition is part of Verdant’s plan to grow its surfactants production, and the company intends to expand further in the lubricants industry.
Verdant, based in Houston, Texas, makes surfactants used in a variety of applications, including as corrosion inhibitors and emulsifiers for lubricants.
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The acquisition of DeForest is the company’s first addition since it formed earlier this year. DeForest’s surfactants are used in metalworking fluids for lubrication, emulsification and corrosion inhibition.
“Our goal is to be the go-to partner for surfactant chemistry,” Verdant CEO John Foley told Lube Report. “The acquisition of DeForest is an important first step when it comes to Verdant’s strategy to accelerate growth through accretive acquisitions in existing and adjacent technologies and markets. With DeForest, we expand our portfolio of surfactants and specialty solutions for the industrial, institutional and consumer segments to more than 275 products.”
Verdant did not disclose the cost of the acquisition. The company also acquired ParaFlow Energy Solutions in the deal. Both DeForest and ParaFlow, both based in Boca Raton, Florida, were owned by the chemical company Chemical Services Group.
“The acquisition puts us in a great position to explore new opportunities with customers in the industrial, metal treatment and auto care markets where lubricants play an important role,” Foley said.
Jeff Edwards, president of both DeForest and ParaFlow, will join Verdant as project director and will help integrate the two companies into Verdant.
Surfactants are the focus of Verdant’s business, with a market-leading position on amphoteric surfactants, Foley said. Verdant has plans for further expansion in the lubricants industry, he added.
“We see lubricants as an attractive segment for Verdant,” he said. “As a new company, we have work to do to get positioned to reach what we see as our full potential as an ingredient and solution provider to the lubricant industry. This includes investments in technical service support, which are already underway, as well as additional acquisitions that we are targeting to add technologies and competencies to our portfolio. We will be reaching out to explore opportunities with existing and potential customers – and welcome all inbound inquiries.”
Foley did not disclose the company’s production capacity but said there was room for growth.
“Verdant has sufficient installed capacity to support the integrated businesses and support growth,” he said. “We also have options on the shelf to debottleneck and expand as business growth necessitates to ensure we meet our commitment to be a safe, compliant supplier of specialty surfactant solutions with high levels of supply reliability.” Verdant was formed in April after private equity firm OpenGate Capital acquired the surfactants business from the chemical company Solvay and renamed it.