Brenntag Boosts Lubricants with Oils ‘R Us Buy
Leading chemicals distributor Brenntag has agreed to buy Oils ‘R US, a Thai distributor of lubricants for automotive, commercial vehicle, industrial and marine applications. The transaction is expected to complete in the second half of 2020.
The acquisition of the business with sales of some €22 million in the 2019 fiscal year is a continuation of Brenntag’s strategy in recent years to beef up its presence in the global lubricants market. This deal also expand its footprint in Southeast Asia specifically.
“Our acquisition in Thailand, which is the second largest economy in Southeast Asia, perfectly drives Brenntag’s lubricants expansion plan in the region forward. Not only regional, but also in terms of service offering, since Oils ‘R Us offers us extensive possibilities to establish lubricant decanting and re-packaging capabilities in the future,” said Henri Nejade, member of Brenntag Group’s management board and CEO Brenntag Asia Pacific.
Brenntag already markets, sells, and distributes lubricants in Singapore, Hong Kong, the Central & South Vietnam, and West Java including Jakarta in Indonesia. Anthony Gerace, managing director, mergers & acquisitions at Brenntag Group, said the distributor’s strategy is to build broad regional coverage of lubricant distribution in Southeast and Southern Asia.
Previous Brenntag acquisitions in the US lubricants sector include B&M Oil and Reeder Distributors in Oklahoma and Texas, respectively, during 2019. These were preceded by the takeovers of NOCO in New York and Mayes Country Petroleum Products in Oklahoma in 2016 and J.A.M. Distributing in Texas and G.H. Berlin-Windward, based in New Hampshire in 2015.
