Chemicals company Brenntag acquired Thailand-based lubricants distributor Oils ‘R Us Co. Ltd. as part of its expansion into Southeast Asia.
Terms were not disclosed for the transaction, which is expected to close in the second half of this year.
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Oils ‘R Us distributes lubricants for automotive, commercial vehicle, industrial and marine applications. “Our acquisition in Thailand, which is the second largest economy in Southeast Asia, perfectly drives Brenntag’s lubricants expansion plan in the region forward,” Henri Nejade, a member of the management board of Brenntag Group and CEO of Brenntag Asia Pacific, said in a news release issued yesterday. “Not only regional, but also in terms of service offering, since Oils ‘R Us offers us extensive possibilities to establish lubricant decanting and re-packaging capabilities in the future.” Decanting is a chemical laboratory process used to separate mixtures.
The company said the acquisition will enlarge Brenntag’s footprint in Southeast Asia, where it already markets, sells, and distributes lubricants in Singapore, Hong Kong, the central and southern regions of Vietnam, and West Java including Jakarta in Indonesia.
According to its website, Oils ‘R Us was established in 2006 as a trade marketing and distribution services provider for ExxonMobil lubricants. The Thai company has offered consulting and analytical services as well as sales and distribution of lubricants. The company also established an industrial lubrications division in 2006.
In 2008, Brenntag entered the Asia-Pacific region with the acquisition of Rhodia’s chemical distribution operations in Australia, India, Taiwan, Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam. It acquired Zhong Yung (International) Chemical Ltd. in China in 2011; ISM/Salkat-Group in Australia and New Zealand in 2012; the chemical distribution division of India-based Zytex Group in 2013; TAT Group of Singapore in 2015; Whanee Corp. of South Korea and EPChem of Singapore in 2016; and Wellstar Group in China and Raj Petro Specialties in India in 2017
“Our strategy is to build broad regional coverage of lubricant distribution in Southeast and Southern Asia,” said Anthony Gerace, Brenntag Group’s managing director for mergers and acquisitions at Brenntag Group. “Adding a platform in the important market of Thailand is the next step for Brenntag Asia Pacific to complete its vison to become the leading distributor and provider of lubricants and value-added services in the region.”
According to Brenntag, Oils ‘R Us generated sales of approximately €22 million (U.S. $24.8 million) in the 2019 financial year.