A private equity firm and an asset manager acquired stakes described as significant in rerefiner Puraglobe, which produces base oil in Germany, the companies announced last week.
Junction Energy Capital and Ara Partners Group – both based in the United States – made a joint investment of an undisclosed amount in Puralube Inc. Neither those companies nor Puralube discussed how the company would use those funds, but they did say the rerefiner has opportunities because of growing demand for API Group III base stocks.
Puraglobes focus on sustainability and developing next-generation base oils complements Ara Partners central investment themes, which are tied to the ongoing energy transition, and positions the company well for future growth within its industry, saidTroy Thacker, managing partner of Ara Partners.
Puraglobe is headquartered in Wayne, Pennsylvania, but its operations are mainly in Europe, stemming from a rerefinery in Zeitz, Germany, with capacity to make 100,000 metric tons per year of Group II and III base stocks. It is building a second rerefinery in Tampa, Florida.
The companies did not disclose the amount of money that Junction and Ara invested nor the size of the stakes theyve taken in Puraglobe, but they described the investment as significant. Puraglobes original shareholder, Allied Resource Corp., retains a substantial stake, according to a joint Aug. 8 press release.
Puraglobe was one of the first used oil rerefiners to begin making Group III base stocks. The Tampa plant is also designed to make some Group III.