Mergers & Acquisitions

PetroChoice acquires Universal Lubricants

PetroChoice acquires Universal Lubricants

PetroChoice, a leading value-added provider of petroleum-based lubrication products and services, has acquired Universal Lubricants’ new oil business from an entity controlled by private equity firm Pegasus Capital Advisors. Through this acquisition, PetroChoice will add 15 distribution locations bringing their total to 45 facilities servicing 31 states. This is PetroChoice’s fourteenth acquisition since 2008.

Under the terms of the transaction, PetroChoice also acquired Universal Lubricants’ laboratory and lubricant blending facilities. In addition, PetroChoice has established a preferred vendor relationship with Universal Lubricants’ refinery and environmental services divisions, which were not included in the transaction.

Additional terms of the deal were not disclosed.

“Universal Lubricants’ new oil business is a natural strategic fit for PetroChoice as it significantly enhances our resources, expands our geographic reach as far west as Denver, and solidifies our position as the largest bulk lubricant distributor in the United States,” said Shane O’Kelly, CEO of PetroChoice based in Ft. Washington, Penn.

“With the backing of Golden Gate Capital, we will continue to evaluate ways in which we can expand our operating network through strategic acquisitions and distribution partnerships with best-in-class lubricant distributors.”

Golden Gate Capital is a San Francisco, Calif.-based private equity investment firm with more than USD 15 billion of capital under management.

“We are pleased to support PetroChoice’s impressive growth and management team led by Shane O’Kelly. We look forward to PetroChoice’s continued success as they accelerate and execute on their expansion strategy,” said Rajeev Amara, a managing director of Golden Gate Capital.

“PetroChoice is the premier U.S. distributor of lubricants and services, and we are excited to partner with them to provide our customers with access to an unmatched selection of products and solutions and industry-leading customer service,” said Rick Palmore, vice president of sales at Universal Lubricants.

“Importantly, our cultures, values and missions are very much aligned, and together, we will be better able to deliver the complex solutions, technical expertise and deep industry knowledge that our customers demand,” Palmore said.

Andrew Cooper, CEO of Universal Lubricants and Partner at Pegasus Capital Advisors, commented, “We are pleased to sell Universal Lubricants’ new oil business to PetroChoice. Universal Lubricants has been a leader in developing the closed loop solution, from used oil collection to branded lubricant sales, and this transaction recognizes the value of that business model, allowing PetroChoice to extend its technical leadership and customer relationships across a broader footprint.”

Founded in 1929, Universal Lubricants is a recognized leader in the distribution of high-quality lubricants, leveraging innovation to meet U.S. demand for oil, including creating customer-specific blends that perform in some of the most extreme environments in North America. Universal Lubricants’ proprietary product lines include their signature Universal(R) line for automotive and heavy-duty diesel engines; their Dyna-Plex 21C(R) premium heavy-duty line; and their sustainable Eco Ultra(R) line. The company’s new oil business is based in Wichita, Kan., and employs approximately 215 people across their 15 distribution locations.

Palmore, an industry veteran with more than 30 years of experience, will join PetroChoice as regional vice president. Going forward, Universal Lubricants’ environmental services companies will operate as RS Used Oil Services, Inc. and Midstate Environmental Services, LP.

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