Interlube Bought by Biochemical Company


Interlube Bought by Biochemical Company
An excavator loads a dump truck with stone at a mining site in northern Canada, north of Quebec. © LarryDallaire

Earth Alive Clean Technologies, a Canadian engineering company in the biochemical sector, acquired Interlube Inc. a Quebec-based producer of biodegradable lubricants for industrial segments, including mining and construction.

The terms of the deal include 60 million Earth Alive shares that Interlube owners got at price of U.S. $900,000, in addition to $1.5 million in cash plus $1.3 million as balance payable in cash in three annual installments. The seller also will receive $1.3 million as a conditional provision based on the future performance for each of the first three anniversaries of the transaction.

The terms include additional provisions following either the third, fourth or fifth anniversary.

Earth Alive said that this deal gives the company insights into the specific needs of Quebec’s mining and industrial world.

“What attracted us to Interlube is that, like Earth Alive, the company not only offers top-quality environmentally friendly products but also provides technical support tailored to each customer,” Earth Alive CEO Nikolaos Sofronis said in a Feb. 1 news release. “Through this acquisition, we not only expand our portfolio of biodegradable products but also strengthen our expertise and market presence in the Quebec mining industry by recruiting field experts.”

Earth Alive offers environmentally friendly solutions based on living microorganisms in industries such as manufacturing, mining, agriculture, and water treatment. It assists numerous industries in minimizing their environmental impact and addressing increasingly prevalent environmental, social and governance sustainability challenges and regulations.

Besides dust suppressants, the company also offers industrial cleaners, biofertilizers and water conservation and recycling solutions in the mining and agricultural industries.

Interlube specializes in biodegradable lubricants and technical solutions in converting various equipment from use of mineral to biological products, according to the company.

Its products include biobased greases, gear and transmission oils formulated from synthetic ester base stocks and other types of lubricants based on plant oils, as well as waste solvent cleaners.

The company primarily operates in Quebec, where mining activities are prominent. It serves sectors such as mining, drilling, agriculture, construction, various transportation types and heavy industry. Since its establishment in 2018, Interlube said it has successfully penetrated the mining sector, offering a slate of biodegradable lubes for underground equipment.

For its fiscal year ending May 31, 2023, Interlube’s revenue stood at $5.6 million, while its earnings before interest, taxes, depreciation, and amortization was $1.2 million.