Palo Duro Capital has sold Smart Chemical Solutions to Gladstone Investment and Xyresic Capital
Smart Chemical Solutions
Smart Chemical Solutions (Smart) is a leading provider of production chemicals for onshore oil & gas operators. Smart’s core focus is on oil & gas production chemicals with complementary custom blending, logistics and distribution capabilities. The company emphasizes high-touch service, data-driven analytics and tailored formulations. Operating primarily from facilities in Ennis and Midland, Texas, Smart holds a strong market position in the Permian Basin with growing positions in the MidCon and Haynesville Basins. Smart offers diverse chemistries such as corrosion inhibitors, emulsion breakers, scale inhibitors and custom combination products to a high-quality customer base.
The Deal
Lincoln International acted as the investment banking advisor to management and ownership, Palo Duro Capital, for the transaction. Lincoln’s buyer insights and execution expertise delivered high-quality options to the owners amid a dynamic market backdrop. Smart’s robust, U.S.-based production chemical and custom blending capabilities, coupled with Xyresic and Gladstone’s strategic relationships, position the company for future growth.
Our Perspective
James Dailey commented, “The efforts of management and Palo Duro have established Smart Chemical Solutions as a nimble and highly effective oilfield production and specialty chemicals partner. The company has a strong management team and the right partner to guide it through the next phase of growth.”
Xyresic Capital, LLC
Xyresic Capital is an independent sponsor founded in 2020 by private equity veterans. The firm seeks opportunities in the lower middle market and looks to create value through operational improvements. Xyresic invests across a wide variety of industries, including business services, energy, franchising, manufacturing and specialty chemicals. For more information, please visit www.xyresiccapital.com.
Gladstone Investment
Gladstone Investment is a publicly traded business development company that seeks to make equity and secured debt investments in lower middle market businesses in connection with acquisitions, changes in control and recapitalizations. For more information, please visit www.gladstoneinvestment.com.
Lincoln’s relentless process execution in the midst of broad macroeconomic uncertainty enabled us to find the right home for Smart Chemical Solutions and our management team.
Meet our Senior Team
Through honest advice, passionate client service and hands-on execution, I strive to deliver outlier results for my clients.
Christopher Petrossian
Managing Director & Co-head of Consumer
Los Angeles
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