mynth
12/2025

STONEPEAK takes majority stake in CASTROL

UNITED KINGDOM Chemicals & Materials / Specialty Chemicals EV 3b - 100b USD

Context

Following a comprehensive strategic review of its lubricants subsidiary, British energy major bp has reached a definitive agreement to divest a 65% majority stake in Castrol to alternative investment firm Stonepeak. This corporate carve-out accelerates bp's reset strategy to simplify its downstream portfolio and optimize its asset base. Accordingly, the net cash proceeds will be entirely allocated toward debt reduction. While relinquishing operational control, bp retains a 35% minority interest in a newly incorporated joint venture, maintaining strategic exposure to the brand's performance with the optionality to fully monetize its remaining shares after a two-year lock-up period. or the acquirer, this infrastructure-driven transaction secures a majority position in a defensive, hard-asset enterprise backed by a consistent track record of nine consecutive quarters of year-on-year earnings growth. Stonepeak's post-closing roadmap focuses on driving Castrol's long-term commercial growth across core international manufacturing and distribution hubs, principally in India (via the publicly listed Castrol India Limited), Saudi Arabia, Thailand, and Vietnam. The transaction is scheduled to close by the end of 2026, subject to customary regulatory clearances.

CASTROL, which reported an EBITDA margin of LOGIN in 2025, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Industry & Manufacturing sector (11.6x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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Target

Castrol operates as a global manufacturer and marketer of high-performance lubricants and functional fluids tailored for automotive, industrial, and marine applications. Leveraging a 126-year brand heritage, the company's product architecture delivers mission-critical formulations designed for specific industrial use cases, including internal combustion engine oils, EV thermal fluids, heavy-duty marine lubricants, and specialized industrial processing fluids. Its product logic centers on friction reduction, equipment lifecycle extension, and operational safety across mechanical systems. The organization’s commercial and geographic architecture relies on localized market penetration, holding prominent equity stakes in critical manufacturing and distribution jurisdictions. These principally include India via the publicly listed Castrol India Limited (49% interest), Saudi Arabia (50%), Thailand (40%), and Vietnam (35%).

Ent. Value

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Multiples

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EV / EBITDA

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Historical Financials (USD)

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REFERENCES

Valuation range: EV 3b - 100b USD

EBITDA range: 750M - 1.3b USD

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of CASTROL by STONEPEAK are reserved for mynth community members. Register for free to unlock full data.

Authors: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Target: castrol

Acquirer: stonepeak