Danlin and Kel-Tech deals bulk up Arsenal’s oil service offerings

  • Danlin Industries purchased from Hastings Equity
  • Kel-Tech deal adds specialty chemicals business
  • Danlin nearly doubled in size in three years

Based in Thomas, Oklahoma, Danlin sells production chemicals, capillary services and completion chemical materials to oil and gas exploration and production firms in Oklahoma, Texas, Wyoming, Arkansas, Louisiana, Colorado, New Mexico, Kansas and Utah.

Under Hastings Equity, Danlin has nearly doubled in size in the last three years and it expects to continue its growth with Arsenal Capital.

Simmons & Co served as financial adviser to Danlin in the deal, with KeyBanc Capital Markets and Madison Capital Funding LLC providing senior debt financing; funds managed by Sankaty Advisors and Metropolitan Life Insurance Co provided subordinated debt financing.

The deal comes shortly on the heels of Arsenal’s acquisition of Kel-Tech from Frankie Keller, founder and CEO of the firm, and family members.

In a prepared statement, Arsenal partner Tim Zappala said both Danlin and Kel-Tech offer ”long standing relationships in their respective geographies” to “enhance service and technical solutions” for customers in the fossil fuel extraction business. 

Both Danlin Industries and Kel-Tech will be separate platforms for Arsenal, but they may share services and best practices.

In December, Arsenal acquired Flowchem Ltd, a specialty chemical provider to the pipeline industry.