agreed to buy the guar and guar derivative manufacturing business of Benchmark Polymer Products LP for $20 million plus earnouts.
The Wilmington, Del., chemicals company said that under the deal, its Aqualon unit will acquire a Dalton, Ga., production facility and receive an equity position in Benchmark.
Aqualon supplies water soluble polymers and technology to the global oil and gas industry for applications in drilling, cementing, completion and fracturing.
"This investment is consistent with Aqualon's strategy to expand its presence in the energy industry and leverage the full portfolio of Aqualon products," said Hercules chief Craig Rogerson. "The oil and gas industry and in particular, the stimulation of natural gas wells via hydraulic fracturing, is projected to continue a strong, long-term growth trend."
Closing is expected to occur this month, subject to a number of nonregulatory conditions.
On Wednesday, Hercules shares rose a nickel to $11.53.