Universal Oil Inc. has expanded its coverage of Ohio by purchasing the lubricant business of a bankrupt oil products distributor.
Universal, which is based in Cleveland, will pay $400,000 to acquire Greystone Holdings Inc.s lubes business, run by the latters Holmes Oil and M&M Oil divisions. Greystone, of Akron, Ohio, retains its fuels business. It filed for Chapter 11 bankruptcy protection last fall.
The sale was approved late last month by a U.S. bankruptcy judge. Universal Vice President R.H. Tim Mendelsohn said the $400,000 essentially pays for lubricant inventories, although Universal will also pick up Greystones lube accounts, increasing its annual sales by 10 percent. Universals business has been concentrated in the greater Cleveland area but will spread south to 10 more counties due to the acquisition.
Universal is a compounder/blender producing metalworking fluids, as well as fleet lubricants and hydraulic fluids. Mendelsohn said Greystone markets similar types of lubes but to some different types of customers.
The unique thing about that area is that its a very vibrant Amish community, he told Lube Report. Were going to be going into a lot of woodworking shops. Theres one, for example, that manufactures plows to be pulled by horses. And the volumes done by these businesses are surprisingly high. They also offer an advantage in that they arent as subject to economic cycles.