Ft. Washington, PA-based PetroChoice announced last Monday that it has acquired Universal Lubricants' new oil business from an entity controlled by Pegasus Capital Advisors. Through this acquisition, PetroChoice will add 15 distribution locations bringing their total to 45 facilities servicing 31 states.
Under the terms of the transaction, PetroChoice also acquired Universal Lubricants' laboratory and blending facilities. In addition, PetroChoice has established a preferred vendor relationship with Universal Lubricants' refinery and environmental services divisions, which were not included in the transaction. Additional terms of the deal were not disclosed.
Going forward, Universal Lubricants' environmental services companies will operate as RS Used Oil Services, Inc. and Midstate Environmental Services, LP.
Wichita, Kansas-based Universal Lubricants owned an 800 barrel per day API Group II base oil re-refinery and a used oil collection network which is not included in the sale and will remain with RS Used Oil Services.
Jessica Pianalto, Universal Lubricants spokesperson told OEM/lube News "PetroChoice acquired the Universal Lubricants company name, the lubricant blending capabilities, and the laboratory services. RS Used Oil Services, Inc. is now operating the re-refinery and the used oil division who provides environmental services to customers. The used oil business was not part of the acquisition. However, Universal Lubricants product lines were part of the acquisition which includes the DynaPlex 21C line and the Eco Ultra line."
"Universal Lubricants' new oil business is a natural strategic fit for PetroChoice as it significantly enhances our resources, expands our geographic reach as far west as Denver, and solidifies our position as the largest bulk lubricant distributor in the United States," said Shane O'Kelly, CEO of PetroChoice." This combination will also benefit customers of both companies as we will be able to provide them with a broader selection of products, services and solutions at more locations. With the backing of Golden Gate Capital, we will continue to evaluate ways in which we can expand our operating network through strategic acquisitions and distribution partnerships with best-in-class lubricant distributors."
Rajeev Amara, a Managing Director of Golden Gate Capital, said, "We are pleased to support PetroChoice's impressive growth and management team led by Shane O'Kelly. We look forward to PetroChoice's continued success as they accelerate and execute on their expansion strategy."
"PetroChoice is the premier U.S. distributor of lubricants and services, and we are excited to partner with them to provide our customers with access to an unmatched selection of products and solutions and industry-leading customer service," said Rick Palmore, Vice President of Sales at Universal Lubricants. "Importantly, our cultures, values and missions are very much aligned, and together, we will be better able to deliver the complex solutions, technical expertise and deep industry knowledge that our customers demand." Mr. Palmore, an industry veteran with over 30 years of experience, will join PetroChoice as Regional Vice President.
Andrew Cooper, CEO of Universal Lubricants and Partner at Pegasus Capital Advisors, commented, "We are pleased to sell Universal Lubricants' new oil business to PetroChoice. Universal Lubricants has been a leader in developing the closed loop solution, from used oil collection to branded lubricant sales, and this transaction recognizes the value of that business model, allowing PetroChoice to extend its technical leadership and customer relationships across a broader footprint."
