December 13, 2017
Volume 17 Issue 52
Fuchs Buys Romanian Distributor
Fuchs Petrolub Group recently acquired Romanian lubricant distributor Lub Asyst. In 2016, Lub Asyst generated some €4 million (U.S. $4.7 million) in sales revenues.
The deal, which took effect on Dec. 1, included the Bucharest-based entity’s labor force and client base. The companies did not disclose the price of the transaction.
A distributor of Fuchs’ industrial oil and greases in Romania for many years, Lub Asyst’s activities complement those of its German parent company in the Eastern European country. The combined operations will be integrated in a newly established local subsidiary, Fuchs Romania. The founding of the new entity means that there are now 58 companies operating under the Fuchs umbrella.
Fuchs has been active in acquisitions over the years, but most of the company's deals have involved lubricant blenders or parts of lubricant businesses. One such deal was the purchase of U.S. specialty synthetic lubricants manufacturer Ultrachem, announced in August 2016. The move saw Fuchs grow its industrial specialty lubricants portfolio in the market.
The November 2017 announcement to acquire a distributor marks the “first step in order to establish a classic trading company in Romania,” a Fuchs spokesperson told Lube Report. More broadly speaking, the move is aimed at expanding the company’s footprint in Central and Eastern Europe.
In related news, earlier this month Fuchs Petrolub announced the sale of its Dormagen brake fluid production and bottling site to Japan’s CCI Group. At the German plant, one of eight such sites that Fuchs operated in the country, the company’s 40 employees also produced and bottled antifreeze. In a statement, Fuchs said the sale would enable it to focus “its production activities on its core business of lubricants again.”
During the first nine months of 2017, Fuchs recorded sales to the tune of €1.9 billion, an increase of 9.4 percent over the same period one year earlier. The company’s earnings before interest rose by 2 percent to reach €281 million. Full-year EBIT are expected to come out at the same level or just shy of the €371 million achieved in 2016 on account of higher prices for raw materials. Full-year sales are projected exceed the 2016 level of €2.3 billion by 7 to 10 percent.