Wallover Oil Co., Strongsville, Ohio, has acquired Commonwealth Oil of Harrow, Ontario, Canada. Terms of the sale were not divulged.
The Commonwealth acquisition fills a long-term growth strategy to establish a base in Canada, said Eric Kielts, Wallover president. The Canadian economy has been more stable than that in the U.S. for the past three to five years. Its a good environment for business, he added.
The acquisition strengthens Wallovers metalworking fluids portfolio and gives the company a strong position in electrical discharge machining and tube forming, markets that it plans to expand in the United States.
Wallover plans to keep the Commonwealth operation intact, retaining all employees and distributors. Commonwealth has excellent employees and facilities, and the Commonwealth brand is important to our plans moving forward, added Kielts. Wallover will distribute its products through the Commonwealth network and vice versa.
Talks between the two companies began in the spring of 2011. Commonwealth wasnt necessarily looking to sell, but they were open to the idea of a sale, explained Kielts. After a few months of discussion, everything just seemed to liven up. It helped that our two companies have complementary product lines and a common business philosophy.
As part of the transition process, Commonwealths current President Fred Herdman will remain with the company through the first six months before leaving to pursue other interests.