Brenntag, a chemical distributor, signed an agreement to acquire the lubricants division of Reeder Distributors Inc., a regional, integrated lubricant distributor in Fort Worth.
Reeder's lubricants division generates sales of about $60 million each year.
Brenntag did not disclose details of the deal, but noted that Reeder's fuel and equipment divisions are not part of the acquisition. The transaction is subject to conditions and is expected to close in the first quarter of 2019.Geographically, this expands Brenntag's lubricants business platform, Markus Klaehn, a member of the management board of Brenntag Group and CEO Brenntag North America, said of the bolt-on acquisition.
In a statement, Anthony Gerace, Brenntag Group's managing director mergers and acquisitions, touted the acquisition as a perfect fit.
"Reeder Distributors' lubricants division," he said, "is a natural addition to our existing lubricants business because of its relationships with major lubricant suppliers and the acquisition will enable Brenntag to expand and strengthen our footprint in the regional market place"Reeder services automotive customers as well as industrial and commercial customers mainly throughout the Dallas-Fort Worth marketplace. Brenntag North America, meanwhile, intends to be an active market consolidator in selected regions in the lubricant distribution market.
Brenntag also recently was named a distributor of Wanhua America Co. Ltd. for aromatic isocyanates, polyether polyols, coatings additives and polyurethane dispersions. Brenntag Specialties will distribute the products lines—including Adwel, Antkote, Wantipro, Wannate, Vesmody, Leasys, Tekspro, Urosin, Lacper and Aquolin—to customers throughout the U.S. However, it will not distribute in Arizona, Arkansas, California, Colorado, Nevada, New Mexico, Oklahoma, Oregon, Texas, Utah and Washington.
Ralph Gatti, director of marketing, material sciences for Brenntag Specialties, said the products are a great addition to Brenntag's portfolio.
Yantai, China-based Wanhua formulates and manufactures urethane technology raw materials, and supplies resins and additives to the coating and construction industries. The product lines will be used in adhesive, coating, elastomer, sealant and construction applications.
