Calumet Gets Lubricants Distributor

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Calumet Specialty Products Partners acquired United Petroleum Co., a wholesale distributor of motor oils, coolants and greases. Terms were not disclosed.

Through its Quantum lubricants brand, privately-held United sells products into the passenger car, heavy duty truck, farming and industrial end markets through distribution partners. Founded in 2011, Gilbert, Ariz.-based United sells more than 160 Quantum-branded products through more than 50 distributors with sales in 35 states nationally.

Through the transaction, Quantum Lubricants will join Royal Purple and Bel-Ray brands and leverage Calumet’s vertically integrated assets that include Group II and synthetic base oil production, which feeds multiple blending and packaging terminals, United Petroleum President Shane Terry told Lube Report. Most importantly, we are pleased to pass on these benefits to our current and future customer base. Despite challenging economic conditions in many petroleum segments, Calumet continues to demonstrate its commitment to diversify its downstream brand portfolio, grow sustainable business and focus on long-term objectives.

Through Uniteds acquisition by Calumet, Terry said, Quantum will gain new manufacturing efficiencies and economies of scale by leveraging vertically integrated assets that include [API] Group II and synthetic base oil production along with blending and packaging assets located in Shreveport, La., Porter, Texas, and Farmingdale, N.J. The acquisition of Quantum Lubricants compliments previous Calumet transactions and further diversifies its downstream product portfolio.

Calumets acquisitions in 2012 included Porter, Texas-based commercial and industrial lubricants producer Royal Purple, blender and distributor TruSouth Oil of Shreveport, La., and Ashland subsidiary Hercules aviation and refrigerant lubricants business in St. Louis, Mo. In late 2013, Calumet acquired Bel-Ray Co., a New Jersey-based manufacturer and distributor of lubricants sold through its industrial, mining and powersports divisions.

Terry said Quantum Lubricants products are marketed through regional distribution relationships with petroleum jobbers. Our focus has been, and will remain, on the enhancement of these partnerships through sales, marketing and technical support to grow mutual organic business and expand branded volume, he said. Within the evolving lubricant marketplace, we work hard to understand the needs of our distributors and their customer base.

According to Terry, who will become vice president of lubricant sales for Calumet, all operational and sales personnel with United Petroleum are joining the Calumet organization.

The Quantum brand is one of the fastest growing lubricants brands in the industry, Jennifer Straumins, president and chief operating officer of Calumet Specialty Products Partners, said in a news release.

This acquisition will allow us to further diversity our portfolio of multi-tiered branded lubricants, stated Bryan Yourdon, vice president of Calumet’s branded and packaged products group. The Quantum brand will join the Royal Purple and Bel-Ray lubricants brands to provide our global customer base with a unique, fully-integrated product offering.

Indianapolis-based Calumet has a base oil plant in Shreveport with 7,000 barrels per day Group II and 4,800 b/d Group I capacity and 100 b/d naphthenic capacity, and another in Princeton, La., with 6,900 b/d naphthenic capacity.