Germany’s Fuchs Petrolub SE, which operates globally in the lubricants sector, is acquiring Ultrachem, Inc., the Delaware, U.S.A.-based company which is a well known producer and marketer of specialty synthetic lubricants for the compressor OEM and industrial maintenance markets.

With this acquisition the Fuchs Group expands its portfolio in the field of industrial specialty lubricants in the United States. The business will continue to be operated out of its New Castle, Del. location.

Ultrachem employs 25 people and generated sales of EUR 15 million (USD 16.75 million) in its fiscal year 2015-2016, almost all of that in North America.

“Industrial oils specialties is a core focus product segment and has been an area of interest to us for quite some time. Fuchs has a leading position in Europe and we will use Ultrachem as a nucleus to grow the business in the United States,” said Steve Puffpaff, CEO of Fuchs Lubricants Co. (USA).

“The acquisition, and especially the Ultrachem team, will significantly enlarge our existing business and will help to grow it using Fuchs know-how and marketplace presence.”

Closing is expected to take place in the fourth quarter of 2016 at the latest.

In 2015, the Fuchs Group accounted for EUR 2.1 billion (USD 2.35 billion) sales with staff of 4,823. Fuchs Lubricants Co. (USA) made EUR 263 million (USD 293.7 million) sales with 349 employees.