Industrial Enterprises of America announced this week that it has signed a letter of intent to acquire a blender, packager and distributor of motor oils and other lubricants based in the Southeastern United States – but wont identify its target.
Industrial Enterprises, based in New York City, described its acquisition target as a well-established, profitable blender and packager of lubricants and related automotive aftermarket products, and said it expects the sale to close within 60 days. A company spokesman declined to provide any additional information about the targeted company or terms of the proposed deal.
Industrial Enterprises entered the lubricant and automotive chemicals markets with its June 2005 acquisition of Unifide Industries of West Long Branch, N.J., for $3.75 million, and its January 2006 purchase of Pitt Penn Oil of Creighton, Pa., for $4 million.
The new acquisition allows us to enter the Southeast market immediately, said CEO John Mazzuto. Upon closing, this acquisition will significantly increase the regional scope of our private-label manufacturing, oil packaging and shipping operations.
Mazzuto predicted that the new acquisition will increase Industrial Enterprises revenues and net income by at least 20 percent in its next fiscal year, beginning July 1.