Martin Midstream Partners LP sold assets used in connection with its Mega Lubricants shore- based terminals and marine lubricants blending business to Louisiana-based John W. Stone Oil Distributor LLC for $22.4 million.
Acquired by Martin in 2007, Mega Lubricants blends, manufactures and delivers marine application lubricants, sub-sea specialty fluids and other commercial and industrial products.
John Stone Jr., general manager of Stone Oil, said the company has been in the marine fuel and lubricants distribution business for nearly 75 years, plying its trade on the lower Mississippi River and the Gulf of Mexico. “With the acquisition of the lubricant formulation, blending and distribution business, we are excited to expand our offering,” he said in a news release. He added that Mega Lubricants and Stone Oil are very complementary businesses.
“Mega Lubricants’ delivery operations will expand Stone Oil’s existing distribution and delivery operations,” he said. “We look forward to integrating seamlessly because of the similarities in corporate culture and personnel.”
According to its website, Gretna, Louisiana-based Stone Oil carries several brands of marine lubricants, include ExxonMobil, Chevron, Shell and Castrol. It delivers its products – in bulk, drums, tote tanks and pails as well as traditional sizes, including case goods – by truck, at any of its dock facilities, by barge or offshore by its tanker.
“The announcement today reflects our continued emphasis on debt reduction through the sale of non-core assets allowing [Martin Midstream Partners LP] to focus on our commercial strengths and long-term relationships built around our refinery services assets,” said Robert Bondurant, executive vice president, chief financial officer and director of Martin Midstream. Bondurant, who becomes CEO of the partnership effective Jan. 1, said selling Mega Lubricants fits with his vision of making the partnership attractive to investors again.
In June 2007, Martin Operation Partnership L.P. completed acquisition of Mega Lubricants Inc., with total purchase price, acquired inventories and immediately scheduled capital upgrades estimated at more than $5 million at that time. At that time, Martin officials said Mega Lubricants would enable Martin and its affiliated companies to transport by barge or truck materials that are needed in the lube manufacturing process, then to supply them to other distributors and retail stores.