ALBERTA

Bri-Chem to acquire Calgary's Kemik Inc.; terms of the deal not disclosed

11/20/2012 08:07 EST | Updated 01/20/2013 05:12 EST
EDMONTON - Bri-Chem Corp. (TSX:BRY) says it has a deal to acquire Kemik Inc., a Calgary-based blender of speciality fluid for the petroleum drilling business.

Bri-Chem, a north American wholesale distributor and manufacturer of oil and gas drilling fluids and steel pipe, said Tuesday that the transaction is expected to close by the end of the month.

Terms of the deal are confidential, Edmonton-based Bri-Chem said in making the announcement.

Kemik blends a speciality fluid product used for well bore cementing for the oil and gas industry.

"The Kemik asset acquisition is the first step of our strategic business plan to pursue growth opportunities in the cementing, stimulation and fracturing speciality fluid additives market in North America," Bri-Chem president and CEO Don Caron said.

Bri-Chem's drilling fluid division is North America's largest independent wholesale supplier of drilling fluids for the oil and gas industry.

It provides more than 100 drilling fluid products, cementing, acidizing and stimulation additives from 25 warehouses throughout Canada and the United States. Its steel pipe division builds large diameter seamless steel pipe for the energy industry.

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