American Refining Group Inc. and D-A Lubricant Company Inc. have reached an agreement in which American Refining Group (ARG) has agreed in principle to sell the Brad Penn® Lubricants brand to D-A Lubricant Company. The companies also have reached a blending and packaging agreement in which ARG will continue to blend and package most of the Brad Penn® Lubricants at the Bradford, Pa. facility. D-A will continue to serve the Brad Penn® distributor network with its lubricant products. Brad Penn® distributors will receive the same level of service they have experienced with ARG from D-A Lubricant.

“This agreement enables ARG to focus on what it does best, refining quality base oils and the blending and packaging of lubricants,” said Jeannine Schoenecker, president and chief operating officer of ARG. “The blending and packaging agreement also contributes to our long-term strategic plan to internally blend a large majority of the base oils we produce in our refining process.”

“This is a great opportunity for not only ARG and D-A, but for Brad Penn® and its distributors. This really is about commitment, growth and opportunity. By bringing together our collective capabilities, the Brad Penn® Lubricants brand is well positioned to build on its solid foundation,” stated Tim Brown, ARG’s executive vice president and chief strategy officer.

“Combining D-A’s nationwide salesforce with a respected and well-known brand such as Brad Penn® Lubricants is a natural fit,” said Michael Protogere, D-A Lubricant’s chief executive officer. “We gain access to ARG’s refining capabilities and Brad Penn® has the benefit of our distribution network and 35-person sales force.”

“It is D-A’s intention to further the market share of the Brad Penn® Lubricants product line including its Penn Grade 1® High Performance Oils,” said Gisela Miller, D-A’s president and CFO. “The synergy between D-A and Brad Penn® advances both brands for much anticipated market penetration throughout North America and beyond. It is a fantastic addition to the D-A family and we are excited to have everyone on board.”

The transition is expected to be complete by Dec. 31, 2014.

American Refining Group Inc. is a privately owned oil refinery in Bradford, Pa. Founded in 1881 at the beginning of the domestic oil boom, the Bradford refinery currently processes, light, sweet paraffinic crude; it is the oldest continuously operating lube oil refinery in North America.

Founded in 1919, D-A Lubricant Co. supplies lubricants to the heavy duty, automotive, industrial and original equipment manufacturer markets. D-A has distribution facilities in six states and ships lubrication products globally. The company is headquartered in Lebanon, Ind., in a state-of-the art, 250,000 square foot facility with manufacturing and packaging capabilities.