Tenex Capital Management has made an investment in Pugh Lubricants, a distributor of nationally branded and private label lubricants.
Pugh was founded in 1947 as an Esso service station in 1947 by John Q. Pugh, Jr. Today, with the closing of the transaction with Tenex, the company will continue to be managed by the third and fourth generations of the company founder.
Pugh’s products – which include lubricants and antifreeze – are sold throughout the Carolinas, Virginia, Tennessee, and portions of Georgia, Alabama, Mississippi, and Arkansas. The company’s customers are active in the automotive (car dealership, quick lube, tire stores, car washes), commercial (heavy equipment owners and operators), industrial, and aviation markets. Brand name products distributed by Pugh include Valvoline, Castrol, Kendall, Phillips 66, Compass, Nevastane, Eco Power, Anderol and Royco.
Pugh is headquartered in Asheboro, NC and has additional facilities in Richmond, VA; Charleston, SC; and Nashville, TN (www.pughlubricants.com).
“We are very excited about this opportunity to work with Tenex and leverage their financial and operating capabilities,” said Mike Pugh, President of Pugh. “This relationship further strengthens our position in the market and creates a foundation for future growth while allowing us to maintain our reputation for quality service earned over nearly 70 years in business.”
“We are pleased to partner with the Pugh family to support accelerated growth and expand the reach of the Pugh brand while preserving the company’s focus on best-in-class customer service,” said Mike Green, CEO of Tenex Capital Management. “We believe our teams bring highly complementary skills and share a common vision that will serve all customers, employees and shareholders well.”
Tenex Capital Management invests up to $100 million in middle-market companies in the industrial, manufacturing, and health and business services sectors. The firm has $452 million of committed capital and is based in New York (www.tenexcm.com).
Stephens Inc. (www.stephens.com) was the financial advisor to Pugh.
© 2016 Private Equity Professional
November 30, 2016
