Junction Energy Capital, a Houston, Texas-based private equity firm, and Ara Partners Group, an alternative asset manager focused on the energy, industrial and infrastructure sectors, announced a significant joint investment in Puralube, Inc. (PURAGLOBE), a technology platform with a proprietary process for producing high-quality base oils, using recycled oil as feedstock. Allied Resource Corporation, the founding shareholder, will maintain a substantial stake in PURAGLOBE alongside Ara Partners and Junction Energy Capital.
PURAGLOBE is uniquely situated to be able to produce Group III base oils from used oil using its proprietary technology. Headquartered in Wayne, Penn., U.S.A., PURAGLOBE, currently operates a facility in Zeitz, Germany and is developing another facility in Tampa, Fla., U.S.A.
“PURAGLOBE fits well within our portfolio of specialty downstream energy assets and benefits from strong tailwinds as regulatory drivers and consumer preferences support increased demand for Group III base oils. PURAGLOBE is well-situated to capitalize on these market opportunities given the quality of its products and strength of its management team, led by CEO Andreas Schueppel,” said Rob Johnson, a partner of Junction Energy Capital.
“PURAGLOBE’s focus on sustainability and developing next-generation base oils complements Ara Partners’ central investment themes, which are tied to the ongoing energy transition, and positions the company well for future growth within its industry,” said Troy Thacker, managing partner of Ara Partners. “We look forward to working with Junction, Allied and PURAGLOBE management to take the company to the next level of its development.”
“We are delighted to partner with such seasoned energy investors. Our collective experience and bench strength is significant, and we expect to leverage these advantages in driving PURAGLOBE’s growth over the coming years,” said Schueppel, PURAGLOBE CEO.
Riverside Management Group, LLC and Triple A Partners LLC acted as advisors to PURAGLOBE.
Junction Energy Capital invests in midstream and downstream energy assets, with a primary focus on control-oriented investments. In prior roles, the team has been responsible for commercial activities for over 40 million barrels of liquids storage, over 1,000 miles of liquids pipelines and has extensive experience in optimizing commodity exposure to maximize value from these types of assets.
Ara Partners Group is an alternative asset manager focused on the energy, industrial and infrastructure sectors. Ara Partners takes a thematic approach to investing within these sectors through direct equity stakes in companies that have exposure to the ongoing energy transition. In addition to being a direct investor, Ara Partners also owns equity stakes in seven affiliated firms: AEM Advisers, Aksiom Partners, Bayou City Energy, Cibolo Energy Partners, Intervale Capital, Junction Energy Capital, and Teleios Commodities.