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  • Sectors: Manufacturing

Case Studies

M&A Target Search for Oil Field Chemicals in India and the Middle East

The client is a leading global developer and manufacturer of chemical intermediates, specialty resins and solutions that are critical to the quality and performance of countless industrial and consumer goods.

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Issue

The client was looking to integrate downstream in terms of products and market coverage. In order to achieve this, they were looking for a target to purchase that would allow them to serve the Indian and Middle Eastern markets. The target had to produce a specific portfolio of products that would allow the vertical integration, but also have interesting proprietary products to help expand SI Group's existing portfolio.


Approach

Solidiance reviewed all players in the oilfield chemicals segment in India and GCC countries. The initial list included over 200 potential targets. After several rounds of filtering and stringent criteria evaluation, a handful of targets were identified. Ultimately, the client chose the best fit and is currently under negotiations to acquire the target Solidiance recommended


Solution

The best approach was to conduct a bottom-up analysis of all potential targets in the relevant region. For this, an initial round of secondary research allowed to create a long list of players in the oilfield chemicals segment. These potential targets were profiled through primary research and submitted through several layers of filtering until the ideal target was identified based on the client's needs and goals. Shortlisted targets were visited one by one to determine those best suited for a final round of consideration based on their specific situation, management, location, sales coverage, capacity, and growth plans, among other critical criteria.


Engagement ROI

The client is currently negotiating the purchase price of the target that best fits its needs and goals. A purchase is expected to happen in early 2017. This will enhance SI Group's coverage of South Asia and the Middle East in terms of existing products, as well as enhance its product portfolio by adding the targets in-house developed chemicals and leveraging them globally through their existing network coverage.