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January 23, 2019

Volume 3 Issue 4

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Brenntag Acquires Reeder Distributors

Chemicals company Brenntag AG acquired the lubricants arm of Texas-based Reeder Distributors Inc., continuing to build its South Central United States distribution network through acquisitions.

Brenntag declined to disclose the cost of the transaction, which it announced last week. The company previously acquired distributors Mayes County Petroleum Products Inc. in Pryor, Oklahoma, in March 2017 and Oklahoma City-based Lubrication Services in March 2013.

Fort Worth-based Reeder Distributors is a fuels and lubricants distribution company that predominantly serves the Dallas, Fort Worth and Waco markets with automotive, aviation, commercial, industrial and racing products. Its fuels and equipment divisions were not part of Brenntag’s acquisition.

Brenntag did not disclose the lubricant distribution volume of its North American operations or that of Reeder Distributors. According to Reeder’s website, the company has over 600,000 gallons of bulk lubricants storage and six packaged goods warehouses. Its lubricants division generates annual sales of approximately $60 million, according to the press release.

Brenntag is already active in the Texas lubricants market through Houston-based J.A.M. Distributing Co., which it acquired in December 2015. At the time, Brenntag claimed J.A.M. ranked among the top five lube distributors in the country. J.A.M. services the automotive, commercial, industrial and marine markets throughout Texas, Oklahoma and Arkansas, Brenntag spokesperson Verena Blaschke told Lube Report.

“The U.S. lubricant marketplace is still highly fragmented, and Brenntag intends to continue to be an active consolidator in this space,” she continued. “This acquisition is an opportunity for J.A.M. and Brenntag to broaden our lubricant footprint in an existing marketplace.” “Reeder Distributors’ lubricants division is a natural addition to our existing lubricants business because of its relationships with major lubricant suppliers,” Anthony Gerace, Brenntag Group’s managing director of mergers and acquisitions, added.

The transaction is expected to close in late January, according to Blaschke.