Bri-Chem to acquire California speciality cement blender
Expands Edmonton company’s reach into major US shale plays.
EDMONTON — Bri-Chem Corp. has entered into a letter of intent to acquire the assets and ongoing operations of an unnamed California speciality cement chemical blending and packaging company.
Bri-Chem, an Edmonton-based manufacturer of oil and gas drilling fluids and steel pipe, said according to the terms of the agreement, it will purchase land and building assets related to the company’s operation, which includes a transloading facility that provides a six car rail spur for bulk purchasing and shipping of materials.
Financial details have not been released but the transaction is to be completed by the end of May.
The cement company, founded in 2001, generates approximately $7 million a year. Bri-Chem said it’s the only local source for sales of oil well related blended bulk materials such as specialty cement, commodity products and other chemicals to contractors operating predominantly in southern and central California within the Monterey Santos Shale.
Bri-Chem identifies one of the cement company’s strategic advantages as having the bulk capacity for materials and providing custom blending, bagging, and transportation for all of its products. A fleet of 10 tractors and 28 pneumatic truck trailers deliver bulk custom-blended product directly to the customer’s well site.
“This US-based speciality cement blending acquisition represents another significant step in our strategic business plan to pursue growth opportunities in the cementing, stimulation and fracturing speciality fluid additives market in North America,” said Don Caron, Bri-Chem’s president and CEO. “We strongly believe that this segment of the drilling fluids market is poised to continue its growth and we are excited to pursue expanding this operation into other major shale plays throughout the US.”