Smart Chemical Solutions has acquired Polymer Technologies with support from Gladstone Investment Corporation and Xyresic Capital, expanding its specialty chemical offering into polymer-gel well intervention and water conformance services for oil and gas operators.
Gladstone Investment supported Smart Chemical alongside Xyresic in completing the acquisition.
Smart Chemical provides production chemicals to onshore oil and gas companies while also offering customized solutions for fuel additives, agriculture, water treatment, and industrial applications.
Polymer Technologies is headquartered in Plainville, Kansas and has provided polymer-gel well services to oil and gas operators since 1989.
Its proprietary treatments are designed to reduce unwanted water production by identifying and sealing fractures, high-permeability channels, casing leaks, and other pathways that allow water to enter wells or reservoirs.
Reducing excess water can lower handling and disposal expenses while potentially improving the economics and productive life of mature oil and gas wells.
The acquisition extends Smart Chemical’s offering beyond traditional production chemicals, fuel additives, and water treatment into more specialized well-intervention and water conformance capabilities.
Together, Smart Chemical and Polymer Technologies will be able to offer customers a broader combination of production chemicals, water treatment programs, polymer-gel treatments, field services, and technical application expertise.
For Gladstone Investment, the transaction is consistent with its strategy of providing equity and secured debt capital to lower middle-market companies in connection with acquisitions, recapitalizations, and changes in control.
Gladstone Investment is publicly traded on Nasdaq under the ticker GAIN.
The combination gives Smart Chemical access to a technology and service offering focused on an increasingly important issue for mature oil and gas assets, where excess water production can increase operating expenses and reduce well economics.
KEY QUOTES:
“Polymer Technologies is a great strategic fit for Smart Chemical. Their technology solves a real and growing problem for operators, and it is highly complementary to the production chemicals we already provide.”
Billy Smith, Chief Executive Officer Of Smart Chemical Solutions
“Polymer Technologies brings a proprietary, field-proven technology and a talented team.”
Christopher Lee, Executive Vice President And Senior Managing Director Of Gladstone Investment
