LEAGUE CITY, Texas--(BUSINESS WIRE)--Foremark Performance Chemicals (“Foremark”), a portfolio company of SK Capital Partners (“SK Capital”), announced today the closing of its acquisition of NexGen Chemical Technologies (“NexGen”), a provider of innovative, alternative natural gas sweetening solutions that improve the efficiency and total cost of operations for E&P and midstream operators, from Black Bay Energy Capital (“Black Bay”). The acquisition of NexGen aligns with Foremark’s strategy to be the leading provider of solutions that enable the safe and sustainable production of natural gas, helping to support the transition to clean energy.
Foremark, acquired by SK Capital in 2017, is a technology-driven leader in natural gas sweetening formulations and formalin manufacturing. Foremark leverages its carbon negative production processes to efficiently manufacture and formulate its line of innovative sweeteners, which reduces the need for flaring and mitigates the corrosive nature of natural gas that is high in hydrogen sulfide, often referred to as “sour gas.” As a result, sweeteners help reduce methane emissions associated with sour gas production, enable greater production volumes from sour gas wells, and extend the life of pipelines and other production and treatment assets.
“The acquisition of NexGen aligns with Foremark’s strategy to expand its role in enabling the transition to cleaner energy,” said Randy Owens, CEO of Foremark. “Natural Gas is a critical energy source needed to meet growing demand in numerous sectors of the global economy, such as electricity generation, manufacturing and transportation, while simultaneously lowering carbon emissions. It also has an increasing role in supporting the reliability of renewable energy sources such as wind, solar and hydroelectricity. Foremark is committed to driving innovation and providing customers with new and customized solutions.”
The acquisition of NexGen extends Foremark’s leading position in natural gas sweetening and broadens Foremark’s geographic reach, customer base and product portfolio. NexGen’s products will be integrated and consolidated into Foremark’s La Porte, TX site, improving their efficiency, available capacity and carbon footprint.
Founded in 2018 by management and Black Bay, NexGen has quickly penetrated the natural gas sweetening market since the commercialization of its novel technology, ScavGen® 1014.
“We see tremendous growth potential ahead driven by ongoing industry efforts to expand sour gas production in a safe, cost-effective and sustainable way,” said Chris Williamson, CEO of NexGen. “Black Bay was an incredible partner to the NexGen team, providing the support and resources to help us bring continuous innovation to the sour gas marketplace. Foremark is the ideal partner to drive our next phase of growth and we are excited to continue to participate as part of the Foremark management team as well as shareholders.”
About Foremark
Foremark Performance Chemicals, headquartered in League City, TX, is a technology-driven leader in natural gas sweetening formulations and the production of chemical building blocks used in numerous end products. Foremark leverages its sustainable production processes to create solutions that support the transition to clean energy and increase performance and efficiency. The business is a leading producer of a broad portfolio of triazines and formalin, and operates out of a highly automated, integrated manufacturing facility in La Porte, TX, that is strategically located on the Houston ship channel and among the world’s largest and efficient producers. Foremark has earned the Platinum Sustainability Medal from EcoVadis, which is awarded to the top 1% of rated companies based on their environmental impact and sustainability program. For more information, visit www.foremarkperformance.com.
About NexGen
NEXGEN is a forward-thinking company that takes a non-traditional approach to oilfield chemistry and applications. Utilizing the experience and expertise of our team, we work with oil and gas operators and other business partners to design custom solutions to address costly operational problems and inefficiencies. Our mission is to deliver truly differentiating chemical technology to increase efficiency and reduce the total cost of operations. NEXGEN is a privately held oilfield service company comprised of a staff of highly experienced chemical application experts. The company’s headquarters is located in the Houston, Texas area and services the upstream and midstream sectors. www.nexgenchem.com
About SK Capital Partners
SK Capital is a private investment firm with a disciplined focus on the specialty materials, ingredients and life sciences sectors. The firm seeks to build strong and growing businesses that create substantial long-term economic value. SK Capital aims to utilize its industry, operating and investment experience to identify opportunities to transform businesses into higher performing organizations with improved strategic positioning, growth and profitability, as well as lower operating risk. SK Capital’s portfolio of businesses generates revenues of approximately $18 billion annually, employs more than 20,000 people globally, and operates more than 200 plants in over 30 countries. The firm currently has approximately $7.8 billion in assets under management. For more information, please visit www.skcapitalpartners.com.
About Black Bay Energy Capital
Black Bay is a private equity firm that invests equity capital in partnership with entrepreneurial management teams who are building high-growth companies in the North American energy and chemical industries. Black Bay’s strategy is to target companies with innovative products and services that help their clients to reduce costs, improve operations and achieve ESG initiatives. The firm’s objective is to drive success through a relentless commitment to establishing and cultivating a true partnership with portfolio company management teams, and a belief that deeply rooted partnerships generate outsized returns by fostering collaboration and creativity. Black Bay is currently investing out of its second fund and has approximately $565 million of assets under management. For more information, please visit www.blackbayenergy.com.
