Bulk Distributor Nov/Dec 16 - Page 3

November/December 2016 Shipper Greasing the wheels B renntag is strengthening its lubricants business in North America with the acquisition of two US distributor companies. The Germany-based group bought Mayes County Petroleum Products, Inc (MCP), a regional integrated lubricant and fuel distributor headquartered in Pryor, Oklahoma. This was preceded by the acquisition of the lubricants business of NOCO Inc, headquartered in Tonawanda, New York. Markus Klähn, member of the management board of Brenntag Group and CEO Brenntag North America, said Brenntag intends to be an active market consolidator in selected regions in the North American lubricants distribution market which was “highly attractive and still fragmented with smaller distribution companies”. He added that the MCP acquisition fits in this strategy, strengthening the group’s relationship with key suppliers and customers in the market. MCP is engaged in the sale, marketing and distribution of lubricants, commercial fuel, ancillary services and chemicals to industrial, commercial, construction, mining and agricultural consumers mainly throughout Oklahoma. “The MCP acquisition is a valuable addition to the JAM platform that Brenntag acquired in December 2015. It is an excellent fit as it strengthens our existing business in the less volatile lubricants market and will lead to a geographical expansion into the adjacent Oklahoma market,” said Anthony Gerace, Brenntag’s managing director mergers & acquisitions. The acquired business generated sales of US$37 million in the financial year 2015. NOCO supplies high quality lubricant products to a broad range of industries in the Northeast USA and parts of Ontario and Southern Quebec. The acquisition does not affect NOCO’s energy distribution or retail businesses. “NOCO’s lubricants business ideally complements our lubricants business in New England, which we established last year with the acquisition of G.H. Berlin-Windward,” Klähn continued. “We will be able to leverage existing infrastructure, add additional talent and solidify our leading market position.” Anthony Gerace pointed out that NOCO’s geographic coverage enables Brenntag to enter the Canadian lubricants market by acquiring an established distribution network within the country. The business is expected to generate total sales of approximately US$209 million in the financial year 2016. Frac train record I n October, Halliburton and US Silica Holdings moved a record-breaking unit train carrying frac sand used for shale hydrocarbons extraction. Nearly 19,000 tons of US Silica White frac sand was shipped from Ottawa, Illinois, to Elmendorf, Texas. The train, the largest frac sand unit of its kind shipped to date in North America, arrived today via the BNSF railway. Unit trains reduce transit time from mine to transload facility, the two firms claim. “Using sand unit trains enables Halliburton to respond to customers’ needs on a shorter timeline and del