CPP Investments is acquiring an indirect minority stake in Castrol, valued at approximately US$10.1 billion, in partnership with Stonepeak to support Castrol's growth in the lubricants market.

Information on the Target

CPP Investments has announced a strategic move to acquire an indirect non-controlling interest in Castrol, a renowned leader in the global lubricants industry. This acquisition is being made in partnership with Stonepeak, a prominent alternative investment firm focused on infrastructure and real assets. The overall transaction values Castrol at an enterprise value of approximately US$10.1 billion, with CPP Investments set to contribute up to US$1.05 billion. Castrol is well-established, serving not only consumer automotive customers but also catering to commercial and industrial sectors around the world.

As a significant player in the large and varied global finished lubricants market, Castrol operates roughly 20 blending plants and collaborates with over 100 third-party facilities and warehouses across 150 countries. The company has a rich history that includes innovating lubricant solutions for high-profile applications, such as servicing the first jet airline, the Concorde, and supporting space missions for over 60 years. Castrol’s commitment to quality and advanced technology has cemented its position as a trustful brand, known for providing high-performance lubricants and fluids supervised by a dedicated global workforce.

Industry Overview in the Target’s Specific Country

The lubricants industry plays a critical role in the Canadian economy, primarily due to its involvement in various key sectors, including automotive, manufacturing, and energy. Canada’s lubricants market is characterized by continuous innovation and the increa