Fuchs Petrolub SE agreed to acquire Delaware-based Ultrachem, which produces and markets specialty synthetic lubricants for the compressor original equipment manufacturer and industrial maintenance markets. Terms were not disclosed, and the deal is expected to close by the fourth quarter.
Ultrachem will continue to operate out of its New Castle, Delaware location, where it employs 25 people and has a 55,000 square-foot production facility. Established in 1965, the company is one of the oldest synthetic lubricants compounders and has been privately held since 1984 by a group of key employees, according to its website.
The location of the blending facility is not strategic, but it is a first-class facility with excess capacity for growth and expansion, a Fuchs representative told Lube Report.
The acquisition will allow Mannheim, Germany-based Fuchs to service the specialty industrial oils market in the United States and strengthen Fuchs’ presence in industrial lubricants, especially for compressors, the representative said. According to Fuchs, Ultrachem generated sales of 15 million (U.S. $16.8 million) in its 2015-2016 fiscal year, almost all of it in North America.
Fuchs has a leading position in Europe, and we will use Ultrachem as a nucleus to grow the business in the United States, Steve Puffpaff, CEO of Harvey, Illinois-headquartered Fuchs Lubricants Co. (USA) said in a news release. The acquisition, and especially the Ultrachem team, will significantly enlarge our existing business and will help to grow it using Fuchs know-how and marketplace presence. Fuchs formed its U.S. subsidiary in the 1980s.
In addition to compressor oils, Ultrachems products include food-grade lubricants, greases, vacuum pump oils, chain oils, impregnating oils for use in powder metal sleeve bearings, refrigeration oils and motor oils, among others.
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