Pack Logix Inc. announced Monday that it acquired the Spectrum Lubricants Corp. packaging plant in Waukesha, Wisconsin, from Phillips 66. Financial terms of the agreement were not disclosed.
Through this deal Pack Logix also acquired the contract packing and fulfillment business of Pax Holdings LLC., a Milwaukee-based packaging firm and investor in Spectrum. The transacted operations will be integrated into Pack Logix’s Milwaukee facility. PS Capital Partners LLC, a private equity firm, is now an equity partner in Pack Logix, however Pack Logix did not disclose PS Capital’s financial involvement in the deal.
Phillips 66 approached Pack Logix about the acquisition, according to Pack Logix CEO and President Bruce Moncrieff. The packaging arm was not core to Phillips [66], so they decided to divest, he said in an interview.
The Waukesha plant is a 40,000 square foot facility with 24 employees, all of whom will be retained by Pack Logix. With this acquisition, Pack Logix’s capabilities now include high-speed lubricant and chemical filling. “We have a greater product offering, especially for lubricants. Really any lubricant we can package now,” Moncrieff claimed.
“We are excited about the additional services we can offer our existing and new customers as we continue to service the increasing demand for contract packaging and value-added services, such as sourcing, packing, warehousing and direct distribution,” he added.
He also noted that the company will continue to look for packaging company acquisition opportunities in the United States, focusing on the Midwest.
Spectrum, a division of Phillips 66 acquired in 2014, is an independent blender, compounder, packager and marketer of specialty lubricants. The Selmer, Tennessee-based company, which will continue to exist, offers two-cycle engine oil, bar and chain oil, small engine oil and hydraulic oil, as well as both private-label and brand name specialty products.
Pack Logix offers an array full range of packaging solutions and service capabilities to several lubricant market segments, including industrial and automotive. Its Milwaukee plant is 80,000 square feet and currently employs 16 individuals. The company moved its operations to the Milwaukee facility in 1962.