Indias Tide Water Oil agreed last week to a 9.59 million (U.S. $13.8 million) acquisition of Price Thomas Holdings Ltd., which owns United Kingdom-based manufacturer of lubricants and care car products Granville Oil & Chemicals.
Kolkata-based Tide Water Oil Co. (India) Ltd.s acquisition includes Granvilles lubricants blending plant in Goldthorpe, Rotherham. Having its own manufacturing facility in Europe will help improve Tide Waters sales margins in the European market, the company noted.
Tide Water informed the Bombay Stock Exchange that the two companies are in the same line of business, and pointed out that no government or regulatory approvals are required for the acquisition under the Reserve Bank of Indias automatic route policy. A Tide Water spokesman told Lube Report Asia that post-acquisition formalities are expected to conclude shortly, but that it couldnt share any further details about the deal until it closes.
Price Thomas Holdings was incorporated in 1998 in the U.K. Apart from its primary business in the U.K., the company exports its products to Ireland, Sweden and Bulgaria. The companys 2014 revenue was 10.92 million and its profit before tax was approximately 870,000.
Tide Water Oil, controlled by Indias state-owned Andrew Yule & Co., manufactures and markets its own Veedol brand of lubricants and has a joint venture to supply JX Nippon Oil & Energys Eneos brands of lubricants in India.
In recent years, Tide Water has expanded its international presence. It has set up offices in Germany, the Netherlands, Canada and the United Arab Emirates; formed a subsidiary to serve as its marketing licensee in North America and South America; appointed a toll-blending agent in Canada; and signed licensing agreements for sales of its Veedol line in Bangladesh and throughout Europe, North America, Latin America and the Middle East through third-party manufacturing.