ChampionX Corp. sold its Corsicana, Texas, chemical manufacturing plant as part of The Woodlands, Texas-based company’s strategy to improve its balance sheet.
“The sale is consistent with our ongoing initiatives to optimize our global supply chain and improve the cost structure in our reservoir chemical technologies business for enhanced flexibility,” commented Sivasankaran “Soma” Somasundaram, president and CEO of ChampionX, in a company release on Sept. 7.
ChampionX sold the plant to RPM International Inc., a global leader in specialty coatings, sealants, building materials and related services. The transaction includes a supplier agreement with RPM to support ChampionX’s future manufacturing needs.
Deric Bryant, COO and president of chemical technologies for ChampionX, added, “We want to express our sincere appreciation to the Corsicana employees for their contributions to ChampionX over the years, and we believe they have great opportunities ahead. We are excited to be able to continue our strong relationship with the Corsicana team through a supplier agreement with RPM that will continue supporting our manufacturing needs in the future.”
Though terms of the transaction weren’t disclosed, Somasundaram said proceeds from the sale will be used by ChampionX to pay down debt and make further progress toward the company’s leverage target.
Parks Paton Hoepfl & Brown was adviser to ChampionX for the transaction and Katten Muchin Rosenman LLP provided the company legal counsel.
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