Bulgarian lubricant marketer Prista Oil has reached an agreement to buy 92 percent of Hungarian petroleum specialty manufacturer Bogdany Petrol Ltd. Prista said it plans to double the size of Bogdany Petrols operations and to use it as a vehicle for increased lubes sales in Hungary.
Bogdany Petrol is located in the city of Nyrbogdny, in northeastern Hungary. It manufactures industrial oils such as quenching and cleaning fluids, technical white oils, and insulating paraffins and gels, among other products. It was founded in 2000 and reported sales revenue of of 6.2 billion Hungarian florint (U.S. $31 million) in 2007.
Prista said the transaction is part of its strategy to diversify both its range of products and raw material supply. It added that Bogdany Petrol also gives it greater access to an attractive country market.
Hungary is undoubtedly one of the most developed countries of Eastern Europe, a good place for investment and a peculiar position for development of Prista Oil in Central and Northeastern Europe, too, said Plamen Bobokov, chairman of the Management Board of Prista Oil. We believe the acquisition … will help develop the business of Prista Oil as a whole and in particular the main business of Prista – lubricants.
Prista said it sees opportunities for synergies between the two companies supply chains, production activities and marketing. Prista officials also believe they can help turn Bogdany Petrol into one Europes largest suppliers in its sector.
Prista, which is based in Sofia, already claims to be one of the largest lubricant suppliers in Eastern Europe. It reported sales revenue of 254,000 (U.S. $354,000) on 178,000 metric tons of lubricants in 2008. It also owns a battery business.