In a move to hike its presence in the oil and gas industry, Belgian chemical group Solvay SA will pay $1.35 billion to buy U.S.-based Chemlogics.
The deal, which should close by the end of the year, values privately held Chemlogics at 10.7 times its earnings before interest, taxes, depreciation and amortization over the last 12 months, Solvay officials said.
It will give the Brussels-based company a 10 percent share of an $8 billion market that is expected to grow by 6 percent per year until 2017, a spokeswoman for Solvay said.
U.S. energy output has been surging in recent years, fueled by new techniques to mine shale-rock formations of oil and natural gas.
Solvay Chief Executive Jean-Pierre Clamadieu said Monday’s deal helped give Solvay “a more balanced geographical and market presence.”
Chemlogics reported sales of around $500 million for the last 12 months, and has 277 employees, Solvay said.