Acquisition of Mayes County Petroleum Products, Inc. by Brenntag
Global chemical distributor Brenntag AG (Mülheim an der Ruhr, Germany) has agreed to acquire Mayes County Petroleum Products, Inc. [“MCP”] (Pryor, OK, United States), a regional integrated lubricant and fuel distributor. MCP is engaged in the sale, marketing and distribution of lubricants, commercial fuel, ancillary services and chemicals to industrial, commercial, construction, mining and agricultural consumers throughout Oklahoma. The acquired business generated sales of USD 37 mn in FY2015. Gross profit in 2015 was USD 6.4 mn, yielding a “normalised” EBITDA of USD 2.5 mn, Brenntag said in a statement.
“The acquisition is a valuable addition to the J.A.M. platform that Brenntag acquired in December 2015. It is an excellent fit as it strengthens our existing business in the less volatile lubricants market and will lead to a geographical expansion into the adjacent Oklahoma market,” Anthony Gerace, Managing Director Mergers & Acquisitions at Brenntag Group is quoted saying.
According to Brenntag, the investment amounts to “around USD 15.5 mn”. Closing of the transaction, which is subject to contractually agreed closing conditions, should occur during the next few weeks.
Source: Brenntag press release
HGE – DCG / 15.09.2016