German chemical distributor Brenntag agreed yesterday to acquire U.S. lubricant distributor Lubrication Services LLC for $42 million.
The transaction is subject to closing conditions and is expected to close within the next few weeks, according to Brenntags March 12 press release.
Lubrication Services has a market position, expertise and infrastructure that will allow us to further increase our participation in the expected rapid growth related to the shale plays, says Anthony Gerace, Executive Vice President of Brenntag North America.
Oklahoma City-based Lubrication Services is a multi-regional distributor of lubricants and chemicals serving the oil and gas industry with facilities in Wyo., Okla., Kan., N.M., Colo., and Texas. According to its website, Lubrication Services specializes in the distribution of natural gas engine, industrial, commercial and automotive lubricants for companies such as ExxonMobil, ConocoPhillips, Citgo, Houghton, Summit, and Camco.
Brenntag, headquartered in M lheim an der Ruhr, Germany, has nearly 13,000 employees and operates a network of more than 400 locations in 70 countries. Gerace believes that with Lubrication Services network of facilities throughout six states in the U.S. Southwest, the acquisition will strengthen existing distribution relationships with key supply partners and key customers in an expanded geography.