Brenntag recently agreed to acquire the assets of Lubrication Services LLC (LSi). Headquartered in Oklahoma City, Lubrication Services is a multi-regional distributor of lubricants and chemicals, serving the oil and gas industry through a network of facilities in six states that cover many of the U.S. shale gas plays. The acquisition is subject to contractually agreed closing conditions.
"LSi has a market position, expertise and infrastructure that will allow us to further increase our participation in the expected rapid growth related to the shale plays," said Anthony Gerace, executive vice president of Brenntag North America. "The acquisition is an excellent addition to the core product offering of our subsidiary, Coastal Chemical Co. LLC. Furthermore, LSi will strengthen existing distribution relationships with key supply partners and key customers in an expanded geography."
In 2012, LSi generated sales of $135 million with a gross profit of $16 million. The investment amount will be $42 million. The transaction is expected to close over the next few weeks.
Based in Germany, Brenntag provides business-to-business distribution solutions for industrial and specialty chemicals, operating a global network with more than 400 locations in 70 countries.
For more information, visit www.brenntag.com.