Soltex Swallows Petroleum Chemicals


Specialty chemicals supplier Soltex announced yesterday the purchase of Petroleum Chemicals, an acquisition made to help Soltex expand into the lubricant additives market.

Houston-based Soltex is largely a marketer of specialty base stocks and also supplies some lubricant additives.

This acquisition positions us for strong growth in lubricant additive sales, Soltex Vice President for Commercial Glenn Bohny told Lube Report. Were already into metalworking [fluid additives], but Petroleum Chemicals is much larger in the two other main additive segments – automotive and industrial, so this really rounds out our portfolio in the additives market.

Petroleum Chemicals President Bob Scheetz said his company was attracted by Soltexs resources. We were interested in them because of their size and infrastructure and finances, Scheetz said. Theyre about 10 times the scale of our company and just in a much better position to grow. He added that he and Soltex President and CEO Anthony Massoud have been friends for 40 years and that their relationship also facilitated the deal.

Petroleum Chemicals will operate as a Soltex business unit under the same name, and Scheetz will work with Soltex on business planning and strategy. Soltexs existing line of metalworking fluid components and additives will remain a separate unit from Petroleum Chemicals.

This is Soltexs second acquisition this year. In February it bought an OM Group factory in Belleville, Ontario, Canada, that produces metal naphthenates and tackifiers. Bohny said the company will remain on the lookout for other acquisition opportunities.

Were seeking to grow our business, he said. We are always open to possible acquisitions that would help us with that, whether it would be a bolt-on acquisition or organic growth.

Soltex supplies a substantial range of products, including polyisobutylenes, polyalphaolefins, API Group I, II, III, dielectric and compressor oils and solvents. Petroleum Chemicals, which was based in Sacramento, Calif., supplies chemical components as well as lubricant additive packages.