MIDLAND, Texas -- United Fuel & Energy Corp., a distributor of gasoline, diesel, propane and lubricant products to customers in the rural markets of the southwestern and south central United States, said that it intends to acquire 10 cardlock facilities from Your Pump of Texas Inc., Longview, Texas.
This transaction will add 10 unattended fueling sites: six in Longview, three in Tyler and one in Kilgore, Texas. All of these facilities are well suited to service large commercial vehicles and fleet businesses, as well as retail customers. The all-cash [image-nocss] acquisition is expected to close by January 31.
With the addition of these 10 cardlock operations, we will have 106 unattended fueling facilities throughout Texas, New Mexico and Oklahoma. These unattended facilities are open 24 hours a day to support our customers' needs for large volumes of diesel and gasoline at convenient locations, said Chuck McArthur, Midland, Texas-based United Fuel & Energy's president and CEO. Our corporate customers also appreciate that when our fleet card is used to complete transactions, detailed reports can be generated to track and analyze purchases in a highly efficient manner. In addition, because these sites don't house convenience stores, commercial drivers aren't distracted or delayed by retail operations and enjoy a lower risk of on-site accidents.
He added, We intend to continue to expand our unattended cardlock business by making selective acquisitions and by opening additional sites in attractive markets. Through this acquisition, we see significant opportunity to expand our presence in northeast Texas and better service our existing customers participating in the region's robust drilling industry, as well as those in other industries.
To help identify and implement growth opportunities in the cardlock business, United Fuel & Energy recently hired Jeff Haas to be vice president of marketing and cardlock operations, said McArthur. His background includes an emphasis on brand marketing.
Separately, in late December, United Fuel & Energy entered into a definitive agreement to acquire substantially all of the operating assets of Ackerly Oil Co. Inc., Big Spring, Texas. The all-cash transaction was expected to close by the end of 2006.
Ackerly Oil has distributed gasoline, diesel, propane and lubricants to customers in West Texas through its bulk plants in Big Spring and Lamesa and some cardlock facilities. Ackerly Oil operates under the trade name Trio Fuel, and provides services to the agricultural, commercial and oil field services industries, as well as to domestic propane customers. The assets being purchased consist of the Big Spring bulk plant, tanks, inventory and truck fleet.
"We are pleased to be extending our footprint in the Big Spring area and will benefit from having a bulk plant that is strategically located near one of our suppliers. This acquisition will also position us to better support our customers operating in the area, as well as develop a relationship with Ackerly Oil's long-time customer base, McArthur said.
United Fuel & Energy distributes product in certain rural markets of Texas, New Mexico and Oklahoma. It represents the consolidation of six companies, the most significant of which is the Eddins-Walcher Co. United Fuel & Energy intends to continue to expand its business through strategic acquisitions. It currently engages in the following activities: cardlock operation, wholesale fuels and lubricants to commercial customers and propane distribution to commercial and residential users.
United Fuel & Energy conducts its operations through 20 branch locations and 96 cardlock sites.
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