Martin Midstream Partners announced last week that it expects to close on its acquisition of NL Grease by the end of July 2013.
The Kilgore, Texas-based petroleum company will take over all assets of NL Grease, LLC, a private-label commercial and industrial grease manufacturer based in Kansas City, Mo. In a May 23 press release, Martin Midstream noted that it expects a cash flow increase of approximately $2.5 million a year from the acquisition.
In the release, Martins president and CEO Ruben Martin said that the NL Grease acquisition may be the first of many. These assets are also a natural vertical integration of our naphthenic refinerys base oil business, he noted, in reference to the companys 5,000 b/d Cross Oil naphthenic refinery in Smackover, Ark. Martin acquired the refinery in November 2009 when it bought the naphthenic lubricant processing assets of Cross Oil Refining and Marketing for $45 million.
Martins interest in the grease business was driven by the desire to expand our lubricant packaging division, Martins manager of corporate communications Christy Taylor told Lube Report. Martin is always looking at new opportunities to expand our asset base.
The company did not disclose the cost of the acquisition.
NL Grease President Jim Taglia is a member of the Independent Lubricant Manufacturers Associations board of directors and served as ILMA president in 2004-2005. Taglia chairs the associations Industry Task Force, which coordinates ILMA testing initiatives, a key part of its ethics program.