PetroChoice, a leading provider of lubrication solutions, has announced that it has acquired Universal Lubricants’ new oil business from an entity controlled by Pegasus Capital Advisors. Through this acquisition, PetroChoice will add 15 distribution locations creating a total of 45 facilities serving 31 states.
Under the terms of the transaction, PetroChoice also acquired Universal Lubricants’ laboratory and blending facilities. In addition, PetroChoice has established a preferred vendor relationship with Universal Lubricants’ refinery and environmental services divisions, which were not included in the transaction. Additional terms of the deal were not disclosed.
”Universal Lubricants’ new oil business is a natural strategic fit for PetroChoice as it significantly enhances our resources, expands our geographic reach as far west as Denver, and solidifies our position as the largest bulk lubricant distributor in the US,” said Shane O’Kelly, CEO of PetroChoice. “This combination will also benefit customers of both companies as we will be able to provide them with a broader selection of products, services and solutions at more locations. With the backing of Golden Gate Capital, we will continue to evaluate ways in which we can expand our operating network through strategic acquisitions and distribution partnerships with best in class lubricant distributors.”
Rajeev Amara, one Managing Director of Golden Gate Capital, said, “We are pleased to support PetroChoice’s impressive growth and management team led by Shane O’Kelly. We look forward to PetroChoice’s continued success as they accelerate and execute on their expansion strategy.”
“PetroChoice is the premiere US distributor of lubricants and services, and we are excited to partner with them to provide our customers with access to an unmatched selection of products and solutions and industry leading customer service,” said Rick Palmore, Vice President of Sales at Universal Lubricants. “Importantly, our cultures, values and missions are very much aligned, and together, we will be better able to deliver the complex solutions, technical expertise and deep industry knowledge that our customers demand.”
Andrew Cooper, CEO of Universal Lubricants and Partner at Pegasus Capital Advisors, commented, "We are pleased to sell Universal Lubricants’ new oil business to PetroChoice. Universal Lubricants has been a leader in developing the closed loop solution, from used oil collection to branded lubricant sales, and this transaction recognises the value of that business model, allowing PetroChoice to extend its technical leadership and customer relationships across a broader footprint."
Adapted from press release by Francesca Brindle
Read the article online at: https://www.hydrocarbonengineering.com/refining/03052016/petrochoice-acquires-universal-lubricants-oil-business-assets-3186/