Leadership Changes at Gulf Oil?
With sale complete, new owner readies for next phase
BOSTON -- Several midstream-oil-company veterans, including standing president Ron Sabia, will take leadership roles in Gulf Oil now that its acquisition by two affiliates of ArcLight Capital Partners LLC is complete, according to the company.
Chelsea Petroleum Products Holdings LLC completed its purchase of Gulf Oil LP from Cumberland Farms Inc. on Dec. 29, as reported in a 21st Century/CSP Daily News Flash. The deal includes Gulf's network of 12 proprietary refined-product storage terminals, with connectivity via the Buckeye and Laurel pipelines, as well as barge access that allows Gulf to source product from Canada, Europe, the Caribbean and all of the major United States refining markets.
ArcLight Capital Partners announced the deal in June.
In a related transaction, Blue Hills Fuels LLC, another ArcLight affiliate, purchased Gulf's Assured Dealers business. The Assured Dealers business collects rent from over 200 owned or leased, but non-operated, independently franchised sites under the Gulf or Mobil brand that also purchase branded product under contract from Gulf.
"Gulf is well-established among consumers as a top-tier brand and in recent years has experienced significant growth of marketed volumes," said Dan Revers, managing partner and co-founder of ArcLight. "The ownership of a major petroleum wholesaler and terminal operator represents a significant opportunity in today's energy industry and is a key component of our investment strategy."
Gulf is a terminal operator and wholesaler of refined petroleum products, including heating oil, diesel fuel and gasoline. It marketed 3.3 billion gallons of products in 2014. Gulf's extensive distribution network includes gasoline retail centers, wholesale distributors and commercial and industrial accounts. It distributes motor fuels, both gasoline and diesel, to over 2,300 branded outlets, as well as 1,000 private-label retail outlets operated by major chain retailers.
- Jerry Ashcroft will be president and chief executive officer of Gulf; he has held executive leadership roles at Buckeye Partners, Colonial Pipeline and JP Energy Partners. He is a decorated major in the United States Marine Corps and holds a Bachelor of Science from the United States Naval Academy and MBA from Goizueta Business School, Emory University.
- Also on the leadership team is Mike Campbell, chief financial officer, who previously held the role of CFO at Crestwood Midstream Partners and Crestwood Equity Partners, the general partner of CMLP and Inergy Midstream LP. Campbell holds a BA in finance from Kansas State University and MBA from Wichita State University.
- Ron Sabia, the current president of Gulf, and other members of the senior executive team will remain in key leadership roles with the business, according to the company.
Gulf will maintain its headquarters in Massachusetts and retain its name and limited partnership structure. This transition is not expected to disrupt existing practices or agreements.
Since its establishment in 2001, ArcLight has invested over $13.9 billion across multiple energy cycles in more than 90 investments. Based in Boston, with an additional office in Luxembourg, the firm's investment team brings extensive energy expertise, industry relationships and specialized value creation capabilities to its portfolio.