Brenntag, a global market leader in chemical distribution, has signed an agreement to acquire the lubricants division of Reeder Distributors, Inc., a regional, integrated lubricant distributor headquartered in Fort Worth, Texas, U.S.A. Reeder Distributors’ fuel and equipment divisions are not part of the acquisition.
Reeder Distributors, Inc. services automotive customers as well as all types of industrial and commercial customers mainly throughout the Dallas-Fort Worth market.
“Brenntag North America intends to be an active market consolidator in selected regions in the lubricant distribution market. The acquisition of Reeder Distributors’ lubricants division is a bolt-on to our lubricants business platform and results in a geographical expansion in an adjacent market,” said Markus Klaehn, a member of the management board of Brenntag Group and CEO of Brenntag North America.
“Reeder Distributors’ lubricants division is a natural addition to our existing lubricants business because of its relationships with major lubricant suppliers and the acquisition will enable Brenntag to expand and strengthen our footprint in the regional market place,” said Anthony Gerace, Brenntag Group’s managing director of Mergers & Acquisitions.
Reeder Distributors’ lubricants division generates annual sales of approximately USD60 million. Closing of the transaction is subject to certain contractual closing conditions and is expected to occur in the first quarter of 2019.
Brenntag, which is headquartered in Essen, Germany, covers all major markets with its extensive product and service portfolio. The company operates a global network with more than 530 locations in 73 countries and a workforce of more than 16,000 employees. In 2017, the company generated sales of EUR11.7 billion (USD13.3 billion).