HCS Group acquires Trafolube GmbH
HCS Group, a leading international supplier of solutions for high-value hydrocarbon specialties, has acquired Trafolube GmbH, a company which recycles transformer and turbine oils using ecologically-sound processes at its production site in Duisburg, Germany. This is the second acquisition of HCS Group in this industry in 2018. This summer, HCS Group also acquired the transformer service division of EES Jürgen Scholz in Hamburg, Germany.
Both acquisitions complement each other, combining mobile services with stationary transformer oil regeneration and maintenance. Together, they complete the existing offerings of HCS Group’s Electrical Oil Services (EOS) business as part of its Business Unit Energy. EOS has established a leading market position both in regenerated and unused electrical insulating oils and associated services in Great Britain and other countries in Europe over many years.
The HCS Group includes the brands Haltermann Carless, ETS Racing Fuels and EOS. HCS Group has about 500 employees and is headquartered in Frankfurt am Main, Germany. The company belongs to H.I.G. Europe, a subsidiary of the U.S. private equity company, H.I.G. Capital.
“The two acquisitions are part of our international expansion strategy in this area and demonstrate our strong commitment to significantly strengthening our EOS business,” says Uwe Nickel, CEO of HCS Group.
With three locations now in Europe and the recently established Electrical Oil Services GmbH, based in Hamburg, Germany, HCS Group is in a position to support changing market conditions.
“In view of growing environmental awareness and the need for cost-efficient energy supply by electricity utilities, we are convinced that the recycling and re-use of regenerated transformer oil will gain in importance across Europe,” says Martin Seipel, managing director of Electrical Oil Services GmbH.
Besides insulating oil testing, mobile transformer maintenance and oil processing, EOS can now introduce its sustainable “Closed-Loop” regeneration model to the market in Germany and in neighbouring countries. In this model, used transformer oil is collected from customers’ sites, regenerated at Trafolube’s production plant to as-new oil quality, and fed back into the circular economy providing multiple benefits to both companies and the environment.
Trafolube will become part of a strong and worldwide active HCS network. The existing business activities of the company will be continued. At the same time, the integration into the EOS business of HCS Group will enhance the service offerings to customers and markets.