This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration. Need a new registration confirmation email? Click here
LITTLETON, Colo., Jan. 7, 2013 (GLOBE NEWSWIRE) -- Innospec Inc. (Nasdaq:IOSP) today announced that a subsidiary of Innospec has acquired Strata Control Services Inc., a private company. The transaction, which was completed on December 24, 2012, includes a performance element in the purchase price and represents between 6x 2012 EBITDA and 5x 2013E EBITDA. The deal is expected to be accretive to Innospec within the first year.
Strata Control Services, based in Crowley, LA, is a leading supplier of mud and fluid loss solutions to oil and gas drilling operations. Its products and services prevent the unnecessary loss of valuable materials into the formation matrix, thereby lowering the cost of operations. Strata Control's sales for 2012 were approximately $20 million.
Patrick Williams, President and CEO of Innospec said, "I am delighted that we have taken this important step in acquiring to build out our presence in this growing market. Strata Control will become part of our Oilfield Specialties business, and we look forward to working with Steve and his team to expand the sales of their excellent product lines, using Innospec's global organization. It is important to recognize that this is only our first acquisition in growing this business, and we will continue to pursue other attractive opportunities in this market."
Steve Cart, the former owner, President and CEO of Strata Control, who will remain with the business, added, "We are pleased to be joining an exciting and growing company, that will give Strata Control a chance to expand at a faster rate than we could do independently, and, at the same time, help Innospec build their Oilfield Specialties business."
About Innospec Inc.
Innospec Inc. is an international specialty chemicals company with approximately 850 employees in 20 countries. Innospec manufactures and supplies a wide range of specialty chemicals to markets in the Americas, Europe, the Middle East, Africa and Asia-Pacific. Innospec's Fuel Specialties business specializes in manufacturing and supplying the fuel additives that help improve fuel efficiency, boost engine performance and reduce harmful emissions. Innospec's Performance Chemicals business provides effective technology-based solutions for customers' processes or products focused in the Personal Care, Household, Industrial & Institutional, and Fragrance Ingredients markets. Innospec's Octane Additives business is the world's only producer of tetra ethyl lead.