Naphthenic base oil supplier Cross Refining and Marketing Inc. said Friday that it has been acquired by Martin Resource Management Corp., a transporter and supplier of oil products and chemicals. The transaction marks the second change in five weeks to the make-up of the U.S. pale oil market. Terms of the Martin-Cross deal were not disclosed.
Martin officials told Lube Report that acquiring Cross was a logical and opportune extension of their business.
Weve been actively involved in [refined products] for many years, President Ruben Martin said yesterday. Weve been doing business with Cross for many years, and we already supply a lot of their crude. It was something that became available and seemed like a good opportunity.
Cross officials said Chairman and Chief Executive Officer Denny E. McConathy, the companys largest stakeholder,decided to sell because he is retiring.
Cross is headquartered in Smackover, Ark., where it operates a plant with capacity to make 5,000 barrels of base oil per day. The company also makes and markets automotive and industrial lubricants, having expanded that part of its business earlier this year.
The sale of Cross comes on the heels of a deal that made the U.S. subsidiary of AB Nynas Petroleum exclusive marketer of naphthenic base oils produced by the former Lyondell-Citgo Refining joint venture in Houston. Those stocks were previously marketed by Citgo, which sold its stake in the joint venture to Lyondell. That refinery has been renamed Houston Refining LP.
Martin Resource Management is based in Kilgore, Texas. The company and its affiliates transport fuels and other oil and chemical products by tanker truck and ship, operate terminals, and sell fuels and lubricants to commercial, industrial and marine customers.
Cross and Martin representatives told Crossemployees about the deal Sept. 14, but neither of the privately owned companies issued a public statement until Cross distributed an announcementFriday.