São Paulo, King of Prussia, PA and San Francisco – May 23, 2022 – Cosan S.A. (B3:CSAN3; NYSE: CSAN), one of Brazil’s largest business groups with investments in energy and logistics and revenue of approximately $23 billion, today announced that its subsidiary Moove, a leading global producer and distributor of lubricants and base oils, acquired PetroChoice Lubrication Solutions (“PetroChoice”) from Golden Gate Capital for $479 million.
PetroChoice is the largest distributor and manufacturer of value-added lubricant solutions in the United States, delivering approximately 62 million gallons annually to the industrial, commercial, and passenger vehicle customer segments. PetroChoice has an extensive and high-quality product offering including Mobil lubricants, as well as several licensed proprietary brands including Medallion Plus, Dyna-Plex 21C and Eco Ultra. Headquartered in King of Prussia, Pennsylvania, PetroChoice operates more than 50 strategically located distribution centers across 25 states.
The acquisition establishes a market-leading presence and distribution footprint for Moove in the $33 billion U.S. lubricants market. Moove will leverage its lubes market expertise, technology, manufacturing capabilities and investment capabilities to support the continued development of PetroChoice and its growth plans. PetroChoice is poised to benefit from favorable end-market dynamics such as shifting regulatory trends and consumer preferences that are driving synthetic lubricants market growth.
Filipe Affonso Ferreira, CEO of Moove, said, “PetroChoice serves as a major cornerstone for our global growth plans and this acquisition helps Moove establish a market-leading position in the large and growing U.S. lubricant market. We have been deeply impressed by the PetroChoice team’s strong execution and strategy of consolidating smaller regional players to create an integrated, centralized, and scalable operating model with strong brand recognition. We look forward to onboarding the PetroChoice team and to future success in developing the business.”
Felix Lo, a Managing Director for Golden Gate Capital, said, “We have enjoyed a successful partnership with PetroChoice and are proud to have helped the company become the clear market leader it is today. Since 2015, we have supported the company with the pursuit of several strategic areas of focus, including footprint expansion, full deployment of its leading-edge technologies, growing its premium and proprietary brand offerings, strengthening its key partnerships, and executing complementary acquisitions. Throughout the course of our ownership, we have held discussions with Moove management about the clear strategic fit between these two businesses and we are confident that Moove has strong expertise to build on PetroChoice’s existing momentum and continue to grow the business.”
Moelis & Company LLC served as financial advisor and Reed Smith LLP and Kirkland & Ellis LLP served as legal advisors to PetroChoice and Golden Gate Capital. Jefferies served as financial advisor and Paul Hastings LLP served as legal advisor to Moove.
A global reference in lubricants, Moove is one of the largest producers and distributors of lubricants and base oils in Brazil and other countries in South America (Argentina, Bolivia, Uruguay, and Paraguay), as well as in Europe (United Kingdom, Spain, Portugal, and France) and the United States. Part of the Cosan Group, the company, offers its specialized lubrication products and services that are essential for moving and providing greater efficiency in industrial equipment and commercial and passenger vehicles.
PetroChoice is the largest lubricant distributor in the United States, providing business solutions for industrial lubricant needs and commercial and passenger car motor oil. The company, headquartered in King of Prussia, Pennsylvania, operates 54 locations across the U.S. and employs some of the nation’s most knowledgeable technical experts in lubrication services and equipment. For more information, please visit PetroChoice.com.
About Golden Gate Capital
Golden Gate Capital is a San Francisco-based private equity investment firm with over $19 billion in cumulative committed capital. The principals of Golden Gate Capital have a long and successful history of investing across a wide range of industries and transaction types, including going-privates, corporate divestitures, and recapitalizations, as well as debt and public equity investments. Notable investments sponsored by Golden Gate Capital include Antylia Scientific, Vantage Elevator Solutions, and Humanetics. For more information, visit www.goldengatecap.com.
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