Brazil’s Cosan subsidiary Moove acquires U.S. PetroChoice Lubrication
By Tatiana Bautzer
SAO PAULO (Reuters) – Brazilian lubricant distributor Moove, owned by Cosan SA, has agreed to buy the largest U.S. lubricant distributor, PetroChoice Lubricants, for $479 million, the company said in a securities filing published on Monday.
The acquisition will boost Moove’s annual revenue by 50%, to around 9 billion reais ($1.87 billion), Chief Executive Filipe Affonso Ferreira told Reuters in an interview.
The company produces and distributes lubricants under the Mobil brand in South America and Europe, with one factory in Brazil and one in the U.K.
PetroChoice will add two factories in the United States and around 50 distribution centers.
Moove had been in talks with PetroChoice’s owner, private equity firm Golden Gate Capital, for around a year about the acquisition, Ferreira added.
The deal will be paid in cash and Moove will finance most of it. Paul Hastings LLP was the legal advisor for Moove, while Kirkland & Ellis and Reed Smith was for PetroChoice.
Cosan SA has a 70% stake in Moove and private equity firm CVC Capital owns 30%.
($1 = 4.8124 reais)
(The story refiles to clarify it is legal advisor in paragraph 6.)
(Reporting by Tatiana Bautzer; Editing by Aurora Ellis and David Gregorio)