Phillips 66 agreed to acquire Spectrum Corp., an independent blender, packager and marketer of specialty lubricants. Terms were not disclosed.
There are approximately 225 employees working at Spectrum today who will become Phillips 66 employees upon the closing of the transaction, a Phillips 66 Lubricants spokesman told Lube Report. Spectrum has three manufacturing locations (Selmer, Tenn.; Waukesha, Wisc.; and Benicia, Calif.) as well as storage and distribution centers and offices in several states. In 2012, Spectrum invested $1.8 million to expand its facility in Selmer.
Spectrums specialty lubricants include two-cycle and small engine oils, gear oils and various chemical products. The company offers private-label and brand name specialty lubricants and related products, including more than 500 products under 14 separate lines. Owned brands include Red Line and Smart Blend, the spokesman noted.
We intend to operate Spectrum as a separate business group within Phillips 66 Lubricants, the spokesman said. Products offered by Phillips 66 and Spectrum will remain unchanged.
The acquisition of Spectrum complements our strong-performing lubricants business by increasing our access to specialized global lubricants markets and is in line with our strategy to selectively grow our marketing and specialties segment, Phillips 66 President Tim Taylor said in a June 23 news release. It also creates new opportunities to expand our worldwide lubricants customer base. The spokesman noted that Spectrum has presence in a variety of expanding international markets, with product sales in more than 70 countries.
Based in Memphis, Tenn., Spectrum is currently owned by private equity firm Dominus Capital L.P. The transaction is expected to close in the third quarter of 2014 following regulatory approvals.