Martin Midstream Partners L.P. announced last Friday that its subsidiary, Martin Operating Partnership L.P., has entered into an asset purchase agreement to acquire substantially all of the assets and inventory of Kansas City, Missouri based NL Grease, LLC, a grease manufacturer that specializes in private-label packaging of commercial and industrial greases.
NL Grease manufactures lithium, lithium complex, polyuria and specialty greases strictly private label production for other companies who market lubricants, having no company owned brand.
The acquisition is expected to close before the end of July 2013. The Partnership expects incremental cash flow of approximately $2.5 million annually from the newly acquired assets.
Ruben Martin, President and Chief Executive Officer of MMLP's General Partner said, "The NL Grease acquisition represents the first of what we believe could be many tuck-in acquisitions in our fast-growing lubricant packaging business. These assets are also a natural vertical integration of our naphthenic refinery's base oil business in Smackover, Arkansas."
Martin Midstream Partners L.P., parent company of Cross Oil, Martin Lubricants (formerly Cross Packaging) and Mega Lubricants, is a publicly traded limited partnership with a diverse set of operations focused primarily in the United States Gulf Coast region. The Partnership's primary business lines include: terminalling, storage, processing and packaging services for petroleum products and by-products; natural gas liquids storage, marketing and distribution services and natural gas storage; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and marine transportation services for petroleum products and by-products. The Partnership is based in Kilgore, Texas and was founded in 2002.