Granatelli, Genus Chemical Considering Merger

J.T. Granatelli Lubricants in Camarillo is negotiating to merge with Genus Chemical Corp., a private manufacturer of chemical cleaning agents that emphasizes environmentally friendly products.

Genus recently completed a 10-year distribution and licensing agreement valued at $72 million with a concern marketing SuperSeal, its tire sealant, to the South Korean military and commercial markets. The base formula for SuperSeal has been used by the U.S. Marines, the U.S. Postal Service and other government agencies for the past 27 years.

Managements of both companies cited similar geographic distribution, marketing efforts and management philosophies as the reasons behind the negotiations.

The announcement came days after Granatelli reported that Union Construction Enterprise, of Laguna Niguel and the Russian Baltic enclave of Kaliningrad, had entered into an exclusive licensing and purchase agreement with the company, a deal with an estimated value of $28.8 million over 10 years.

The agreement gives Union Construction exclusive marketing and distribution rights to Granatelli products in Lithuania, Poland, Belorussia and Kaliningrad.

Granatelli also said that the Oxford Group of Bethesda, Md., has agreed to invest $1.5 million in the company, a move that will allow Granatelli to continue efforts to sell its products in China. Granatelli makes motor oil and general household and car lubricants.