Brenntag, a global market leader in chemical distribution, has agreed to acquire the assets of Lubrication Services, LLC (LSi), a North American multi-regional distributor of lubricants and chemicals. The company is headquartered in Oklahoma City, Oklahoma and serves the Oil & Gas industry through a network of facilities in six states that cover many of the US shale gas plays.

Anthony Gerace, Executive Vice President of Brenntag North America: "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. 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."

For the financial year 2012, LSi generated sales of USD 135 million, gross profit of USD 16 million and EBITDA of USD 7.5 million. The investment amount will be USD 42 million.

The acquisition is subject to contractually agreed closing conditions. Closing of the transactions is expected to happen over the next weeks.

According to the company's website, Lubrication Services, L.L.C. has specialized in the distribution of natural gas engine, industrial, commercial and automotive lubricants since 1988. LSi distributes lubricants for ExxonMobil, ConocoPhillips (now Phillips 66), Citgo, Houghton, Summit, Camco and coolants/antifreeze from Dow Chemical and Ashland Chemical. The company has locations in Texas, Oklahoma, Kansas, New Mexico, Colorado and Wyoming.

Brenntag provides business-to-business distribution solutions for industrial and specialty chemicals globally. With over 10,000 products, Brenntag offers one-stop-shop solutions to more than 160,000 customers. Headquartered in Mülheim an der Ruhr, Germany, the company operates a global network with more than 400 locations in 70 countries. In 2011 the company realized global sales of EUR 8.7 billion (USD 12.1 billion) with nearly 13,000 employees.