Brenntag, the global market leader in chemical distribution, has signed an agreement to acquire the lubricants business of NOCO Inc., headquartered in Tonawanda, New York, USA.
Markus Klähn, Member of the Management Board of Brenntag Group and CEO Brenntag North America: “NOCO’s lubricants business ideally complements our lubricants business in New England, which we established last year with the acquisition of G.H. Berlin-Windward. We will be able to leverage existing infrastructure, add additional talent and solidify our leading market position.”
NOCO supplies high quality lubricant products to a broad range of industries in the Northeast region of the United States and parts of Ontario and Southern Quebec. The acquisition does not impact NOCO's energy distribution or retail businesses.
Anthony Gerace, Managing Director Mergers & Acquisitions at Brenntag Group: “NOCO’s geographic coverage makes this a perfect fit and a natural extension of our existing lubricants business in the Northeast region of the US. Furthermore, we are pleased to enter the Canadian lubricants market by acquiring an established distribution network operating in a major industrial region within the country.”
The business is expected to generate total sales of approximately 209 million USD in the financial year 2016. Gross profit 2016 is estimated to amount to 26.9 million USD with a normalized EBITDA of 4.4 million USD. The investment amounts to 36.7 million USD. Closing of the transaction is expected to occur in the course of the next weeks, subject to contractually agreed closing conditions.