Wakefield Agrees to Purchase Production Facility from BP

Wakefield Canada Inc. has announced that it has signed an agreement with BP Lubricants USA Inc. to purchase the Castrol Canada blending and packaging plant located in Toronto, Ontario.

The plant is located adjacent to the Wakefield offices, in Toronto.

BP Lubricants announced its decision to explore options for the future of the BP Lubricants facility in Toronto earlier this year, and Wakefield was one of several interested parties to submit proposals.

BP Lubricants chose Wakefield and signed a non-binding letter of intent with Wakefield and the two companies have been working since then to arrive at an agreement.

Under the terms of the agreement, Wakefield will assume ownership of the plant and manufacturing responsibility for the plant, blending and packaging most Castrol products for the Canadian marketplace.

Wakefield will continue to have exclusivity with respect to sales, marketing and distribution of Castrol consumer and commercial lubricants in Canada.

Castrol Canada Inc. is a part of the BP Group, one of the world’s leading energy companies. BP believes that this alliance will provide the opportunity to combine the global technology and marketing leadership of BP with the local entrepreneurial capabilities of Wakefield. This alliance will ensure the continuing success of the Castrol brand, which is already a market leader in the intensely competitive Canadian automotive lubricant market.

According to Bob MacDonald, president and CEO of Wakefield, “We intend to deliver on our aspiration to be the clear leaders in the Canadian marketplace. This is a strategic move for Wakefield and provides us with greater flexibility to deliver intuitive customer service within the Canadian marketplace”.

David Fifield, COO of Wakefield notes, “This represents another milestone for Wakefield.  It strengthens our strategic relationship with BP, enhances our capabilities and confirms our commitment to the Canadian marketplace.”

BP Lubricants will continue to retain ownership of the facility and operations during a transitional period during which BP Lubricants and Wakefield will work closely to ensure a seamless transition to Wakefield ownership sometime around midyear of 2010.