LongRange Capital has agreed to acquire US Synthetic from publicly traded ChampionX Corporation.
The sale of US Synthetic is expected to close following the completion of Schlumberger’s $8.2 billion acquisition of ChampionX which was announced in April 2024. This transaction has been delayed due to antitrust scrutiny and the need for regulatory approvals from several countries, including the United States and Norway, but is now expected to close by the end of the first quarter.
US Synthetic specializes in manufacturing polycrystalline diamond (PCD) cutters, including PCD inserts, bearings, and other synthetic diamond-based products used in the oil and gas industry, as well as other applications. With a portfolio of over 600 patents, the company is a key global provider of engineered synthetic diamond products. Founded in 1978, US Synthetic is headquartered in Orem, Utah, just north of Provo.
Beyond oil and gas, PCD technology is used in precision machining for aerospace, automotive, and electronics manufacturing. It is also essential in construction for road milling and concrete cutting, as well as in woodworking and materials processing. Additionally, PCD is used in advanced fields like optics and quantum technology, as well as in industries such as jewelry making and medical device production.
“We are excited for our future as a standalone business under LongRange’s ownership,” said Rob Galloway, the president of US Synthetic. “LongRange’s resources, capital, and commitment to fostering innovation and sustainable growth make them an ideal partner to support our efforts to deliver leading PCD solutions to our customers and invest in new applications for synthetic diamond technology.”
“By investing in US Synthetic, we’re not just backing a technology leader, we’re also supporting a company that has built a strong culture and reputation in its industry through a relentless focus on its customers’ needs for nearly 50 years,” said Bob Berlin, the managing partner at LongRange. “We look forward to partnering with Rob Galloway and the US Synthetic team to build upon their track record of delivering innovative material technology solutions to the energy industry and broader industrial end-markets.”
ChampionX (NASDAQ: CHX) provides chemical products, artificial lift technologies, and digital automation services used in the oil and gas industry. Its chemical segment, including Nalco Water, helps prevent corrosion and scaling in oilfield operations. The artificial lift business, featuring Lufkin Rod Lift Solutions, supplies pumps and automation technologies to enhance oil well performance. ChampionX, led by CEO Soma Somasundaram, was founded in 1928 and is headquartered in The Woodlands, Texas, with operations across North America, Latin America, Europe, the Middle East, and the Asia-Pacific region.
LongRange Capital makes both control and minority investments of $50 million to $400 million in middle-market businesses with revenues exceeding $200 million. Sectors of interest include non-discretionary consumer, food and beverage, information and data services, packaging, industrial, specialty chemicals, and specialty distribution. LongRange closed its first fund in September 2020 with capital commitments of more than $1.5 billion. The firm was founded in 2019 and is headquartered in Stamford, Connecticut.
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