Dave Stascavage, president and chief operating officer of Lube-Tech & Partners, told Lube Report that the merger will enhance the range of products and services available to deliver total customer care. Stascavage noted each of the companies has unique strengths, and we see the ability to leverage those strengths and best practices throughout the geography.

Common brands of lubricants that were distributed by the companies separately will continue to be supplied by Lube-Tech & Partners. As for Lubrication Technologies brand of Lube-Tech products, Stascavage expressed that the merged company expects to eventually supply this brand across the platform.

Beyond the distribution business, the remaining Lubrication Technologies operating units include private label manufacturing, equipment and services, recycling and transportation, Stascavage added, which will remain with the legacy company based in Golden Valley, Minnesota.

The owners have seized the opportunity to create a sustainable, multi-generational family owned business with the value proposition and scale to be the market leader, said Stascavage. Although the companys focus continues to be the Midwest, he mentioned that it will eventually seek out acquisitions and grow beyond existing geography.

Tom Glenn, president of Petroleum Trends International, said that the formation of Lube-Tech & Partners definitely expands the presence of the companys footprint in the Midwest and underscores the race for marketers to capture large segments of geographic and brand dominance. Glenn added that there are several other companies, such as RelaDyne and PetroChoice, seeking to do the same – in some cases even more aggressively.

The geographic footprint of these companies and others are very impressive when one looks at the entire U.S. map. But no doubt about it, Lube-Tech certainly puts a large prominent footprint in the Midwest and creates an interesting challenge for all marketers vying for position in the U.S. market, Glenn told Lube Report.

Regarding the decision to separate Lubrication Technologies manufacturing and distribution businesses, Glenn sees it as strategic move in the market because the manufacturer produces a significant volume of company-branded lubricants. On the private label [brand] side, youre making products that are competing with some of the major brands sold by distributors, and there could be some brand and channel conflicts that would make [separating manufacturing and distribution] desirable.

David Boyer, president of Des Moines-based Boyer Petroleum, will serve as director of sales and operations for the Iowa region of Lube-Tech & Partners, and Andrew Haag, president of Milwaukee-based Moore Oil, will serve as vice president of sales and marketing for the new company.