Brenntag, the global market leader in chemical distribution, strengthens its lubricants business in North America by agreeing to acquire Mayes County Petroleum Products, Inc. (“MCP”), a regional integrated lubricant and fuel distributor headquartered in Pryor, Oklahoma.
Markus Klähn, Member of the Management Board of Brenntag Group and CEO Brenntag North America: “Brenntag intends to be an active market consolidator in selected regions in the North American lubricants distribution market which is highly attractive and still fragmented with smaller distribution companies. The MCP acquisition perfectly fits in this strategy, strengthening our relationship with key suppliers and customers in the market.”
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 mainly throughout Oklahoma.
“The MCP 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,” says Anthony Gerace, Managing Director Mergers & Acquisitions at Brenntag Group.
The acquired business generated sales of 37 million USD in the financial year 2015. Gross profit 2015 amounted to 6.4 million USD with a normalized EBITDA of 2.5 million USD. The investment amounts to around 15.5 million USD. The closing of the transaction will occur in the course of the next weeks, subject to contractually agreed closing conditions.