Sharjah-based petrochemical giant GP Global has expanded its portfolio with the acquisition of a leading lubricant manufacturer in the Middle East.
In a deal worth $75 million, GP Global – a conglomerate formerly known as Gulf Petrochem Group – acquired a majority stake MAG Lube, which manufactures lubricants for distribution to more than 40 countries across the Middle East, Africa and Asia.
GP Global said MAG Lube’s current CEO, Mahmoud Al Theraawi, will remain in his position and continue to lead the business in the UAE with the GP Global Lubricant team in UAE integrating into the overall MAG Lube LLC structure.
Established in 2013, MAG Lube is described as one of the fastest growing companies in the UAE, witnessed 100% growth year on year, with 30,000 sq m state-of-the art blending facility situated in National Industrial Park, Jebel Ali.
GP Global said its factory has the latest fully-automated blending system technologies and has a fully equipped, ultra-modern laboratory focusing on research and development.
MAG Lubes currently employs over 100 employees across the Middle East and Africa.
As a result of the acquisition, GP Global’s lubricant manufacturing business is expected to achieve regional sales of over 60,000 kilolitre (KL) in 2018, up from 12,000 KL prior to the acquisition.
The renewed output will move GP Global into the one of the top lubricant manufacturers in the UAE and get closer to GP Global’s strategic vision of producing 250,000 KL of lubricants globally by 2022 through organic and in-organic growth.
Speaking about the acquisition, Sudhir Goyel, managing director at GP Global, said, “Our lubricants business has witnessed steady growth over recent years both organically and in-organically. The acquisition of MAG Lube LLC, a regional leader in lubricants, compliments our growth plans for the group and brings us a step closer to our group’s strategic vision of producing 250,000 KL of lubricants by 2022 through organic and in-organic growth.”
The acquisition will further bolster GP Global’s offering across its business units – refining, storage terminals, trading & bunkering, bitumen, lubricants and grease manufacturing, shipping and logistics.For all the latest energy and oil news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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