- Mergers & Acquisitions
GP Global completes acquisition of MAG Lube LLC
GP Global (Formerly Gulf Petrochem Group) announced that it has completed its acquisition of MAG Lube LLC, a company valued at close to USD 75 million, in the United Arab Emirates. MAG Lube LLC is a leading manufacturer of lubricants in the Middle East, distributing its full range of lubricants in more than 40 countries across the Middle East, Africa and Asia.
MAG Lube’s current CEO, Mahmoud Al Theraawi, will remain in his position and will continue to lead the business in the UAE, with the GP Global Lubricant team in UAE integrating into the overall MAG Lube LLC structure.
Established in 2013, MAG Lube LLC is one of the fastest growing companies in the country that witnessed 100% growth year-on-year. MAG Lube has a 30,000 square meter state-of-the-art lubricant blending facility located at the National Industrial Park, Jebel Ali. Its factory has the latest fully automated lube blending system technologies designed in France and a fully equipped, ultra-modern laboratory focused on research and development.
MAG Lubes LLC currently employs more than 100 people across the Middle East and Africa, who will continue to service customers with the same level of care following the acquisition.
As a result of the acquisition, GP Global’s lubricant manufacturing business is expected to achieve regional sales of more than 60,000 kiloliters (KL) in 2018, from the current 12,000 KL. The integration of MAG Lube with GP Global will catapult the latter into one of the top lubricant manufacturers in the UAE, bringing the company’s vision closer to producing 250,000 KL of lubricants globally by 2022 through organic growth and acquisitions.
“Through our majority stake in MAG Lube LLC, we will be able to realize the kind of scale that would allow us to enjoy the benefits of the entire value chain in line with our presence in other components of the chain. The group’s combined output will now stand at 140,000 KL per annum which includes GP Global’s operations in India,” said Sudhir Goyel, managing director of GP Global.