IBM Announces Acquisition of Chem Systems Inc.
Armonk, New York (March 16, 1998) – Demonstrating its long-standing commitment to the global chemical and petroleum industries, IBM is acquiring The Chem Systems Group Inc., a leading management consulting firm serving chemical and petroleum companies. Chem Systems, which employs approximately 160 people in New York and London, will operate as Chem Systems, An IBM Company. It will function as part of the Consulting Group, IBM Global Services, and will draw on the capabilities of IBM Chemical Industry Solutions. Terms of the deal were not disclosed.
The acquisition was made in response to business opportunities arising from the trend toward consolidation and globalization in the chemical and petroleum industries. “The chemical and petroleum industries are experiencing rapid change, and information technology is the most powerful tool available for dealing with the competitive issues that these industries are facing,” said Erwin Staudt, general manager, Global Process and Petroleum Industries. “The combination of Chem Systems’ industry knowledge with IBM’s global reach, research and development capabilities and information technology implementation skills will create an unmatched resource for chemical companies that want to not only survive change, but to thrive on it.”
Chem Systems current offerings in the chemical and petroleum industries include market and product analysis; technology and industry benchmarking; analysis of competitiveness and profitability; business positioning; strategic planning; and support in mergers, acquisitions and divestitures. The acquisition by IBM will give the Chem Systems the resources to expand both the range of its services and its geographic reach.
“In IBM, we’ve found a partner that understands the challenges confronting today’s chemical and petroleum producers, and is dedicated to creating innovative information technology solutions to address them,” said Ken Stern (John Philpot in EMEA), managing director of Chem Systems. “Those Chem Systems clients that are aware of the acquisition have been very positive about how it will benefit them.”
Chem Systems is known as an objective counselor to its clients, and as part of IBM, it is expected to maintain its objectivitity. “IBM Consulting has a strong tradition as a vendor-neutral consulting organization,” Erwin Staudt said, “and we expect Chem Systems to maintain its very strong commitment to this principle as well. We don’t intend to change Chem Systems, except to provide the means to grow its services and its geographic reach.”
The Chem Systems announcement comes on the heels of another major chemical industry initiative on the part of IBM — the formation of the IBM Solution Center at Monsanto. The joint venture with one of the world’s largest chemical companies will provide quick-start services for companies implementing the complex business management systems known as Enterprise Resource Planning (ERP).
Chem Systems was founded 33 years ago. Its main offices are in London and New York, with supporting operations in Asia Pacific and worldwide. It serves customers throughout the process industries, with special emphasis on chemicals and petroleum. Its functional practices include market research and forecasting, process technology and economics, strategic planning, environmental and financial.
IBM Consulting is one of the world’s fastest-growing consulting organizations, with more than 4,000 professionals deployed around the globe. IBM Consulting specializes in business transformation and information technology consulting.
Source: IBM