Amalie Oil to Acquire LSC’s U.S. Business

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Amalie Oil to Acquire LSC’s U.S. Business
An aerial view of a Lubricating Specialties Co. lubricants production facility in the Los Angeles, California area. Photo courtesy of Lubricating Specialties Co.

Amalie Oil Co. entered into a letter of intent to purchase the United States business of Lubricating Specialties Co., according to an announcement issued by LSC on Monday. Financial terms were not disclosed for the agreement, which is expected to close on or before May 31, LSC CEO Sydney Thwaites told Lube Report yesterday.

LSC was in discussions with a select group of strategic buyers, and Amalie was chosen to move forward with, Thwaites said in an emailed statement. Amalie is the largest independent lubricant manufacturer in the U.S. LSC is the largest in the Western U.S. The combined entity creates a dominant platform in the industry with a wide range of product and service capabilities.

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LSC customers will not see any changes in quality and service, and Thwaites noted that Amalie brings the ability to serve LSCs customers over a stronger, more flexible network with significant supply chain advantages. He said no immediate changes are expected to LSC management.

Amalie Oil did not respond to requests for comment by deadline.

Pico Rivera, California-based LSC has production facilities at three locations in the Los Angeles area: Pico Rivera, Azusa and Vernon.

In 2015 and 2016 it began operating two blending plants in Jamaica to supply the Caribbean and South America. These plants are not part of the sale to Amalie, Thwaites noted.

According to its website, LSC began manufacturing solid greases for the Southern California market in 1928. The company has since expanded to offer more than a thousand products, which it distributes globally.

In late 2016, LSC acquired the Vistone product line and associated business from Infineum USA L.P. The transaction included Vistone’s compressor fluid brand, a detergent additive for aviation lubricants and a viscosity modifier used in a variety of industrial lubricant and grease formulations.

Amalie has its headquarters on a 20-acre site at Port Tampa Bay, where it blends and packages over 3,000 products. The company was founded in 1957 as Petroleum Packers Inc. and has been privately owned by the Barkett family since 1977. It adopted the name Amalie Oil in 1998, when it acquired the historic motor oil brand – which dates back to 1903 – from Sunoco. Amalie specializes in manufacturing and marketing motor oil and industrial lubricants, which it ships to all 50 states and more than 100 countries.

In late 2015, Amalie acquired a 42-acre lubricant blending and packaging facility in South Carolina, including 14 million gallons of tank storage, from Delfin Group USA. Amalie also has a branch in Commerce, California that operates under the U.S. Lubricants Chalet name.

Related Topics

Business    Finished Lubricants    Mergers & Acquisitions    North America    Region    U.S.A.