Mega Deal for Mega Lubricants


Martin Operation Partnership L.P. on June 13 completed acquisition of Houston-based Mega Lubricants Inc., a lubricants packaging and blending company, with total purchase price, acquired inventories and immediately scheduled capital upgrades estimated at more than $5 million total.

The newly created entity will be called Martin Midstream Mega Lubricants. Martin offers lubricants, fuel and logistic support through 16 facilities along the Gulf Coast from Mobile, Ala. to Brownsville, Texas. Another Martin company, Martin Transport, is a trucking firm that moves a variety of petroleum-related cargo. It transports base oils and additives used for blending in the region as well as finished products out of blending facilities for sale and distribution.

Rodney Holland, senior vice president of sales and marketing at sister company Midstream Fuel Service LLC, said acquiring Mega Lubricants helps make Martin Midstream a one-stop vendor for lubricants customers.

Were hauling materials out, and hauling finished products out, Holland explained to Lube Report. We already do the distribution for a number of the major lubes companies anyway, so were touching a lot of these pieces. This acquisition allows us to touch that one piece where we werent.

The Martin Transport division was already hauling a significant amount of product both in and out of Mega Lubricants Channelview, Texas, facility, according to Holland. We got to the point we had a trucking office on their property, he said. So it was a close working relationship – thats what led to the communication and this opportunity.

Mega Lubricants had six full-time employees, and all will stay on with the business, according to Holland. The capital upgrades will include improvements to offices, a lab and lab equipment, among others, Holland said.

Large companies spend a lot of time and effort on vetting the different vendors that they deal with, Holland added. We see it as a huge advantage for them to lessen the number of times they have to go through that process, he said.

Martin Midstream and its affiliated companies will now be able to transport by barge or truck materials that are needed in the lube manufacturing process, then truck out finished products to store, sell and transport to other distributors who deliver to end users along the Gulf Coast as well as other regions.

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