GP Global, formerly known as Gulf Petrochem, has acquired a majority stake in Mag Lube LLC. The Dubai-based company, which distributes a range of lubricants in more than 40 countries across the Middle East, Africa and Asia, is reported to be valued at close to $75 million.
The purchase of the stake is expected to significantly increase GP Global’s lubricant manufacturing business, boosting regional sales to over 60,000 kilolitres in 2018, up from 12,000 kilolitres prior to the acquisition.
It is reported that the current chief executive of Mag Lube, Mahmoud Al Theraawi, will continue to head up the business in the UAE. The existing GP Global lubricants team in the UAE will be merged into the Mag Lube operational structure.
Sudhir Goyel, managing director of GP Global, said: “The acquisition of Mag Lube complements our growth plans for the group and brings us a step closer to our strategic vision of producing 250,000 kilolitres of lubricants by 2022. Including our operations in India, GP Global’s combined output will now stand at 140,000 kilolitres per annum.”
GP Global recently announced the expansion of its European and Asia Pacific bunkering operations with the appointment of five senior traders alongside the establishment of a new office in Hull, UK, and a new branch office in Seoul, South Korea. The appointments and new offices follow the launch of GP Global’s Southern and Sub-Saharan African trading desks in late 2017 and further consolidates the group’s trading business around the world.
Prerit Goel, group director at GP Global, added, “Our bunkering division enjoyed a successful year in 2017, despite challenging market conditions, and that was down to the people we have in place across our trading desks around the world. With these latest appointments, we are confident that the new team structure both in the UK and Asia Pacific, will allow us to capitalise on further opportunities moving into 2018.”