Foremark Performance Chemicals, a portfolio company of SK Capital Partners, announced the closing of its acquisition of NexGen Chemical Technologies, a provider of natural gas sweetening solutions from Black Bay Energy Capital.
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, leverages its carbon-negative production processes to manufacture and formulate its line of 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 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.
“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.”
