Operations ‘Swap’ Opens Door to Growth for Two Jobbers
SC Fuels hands off Texas for Pilot Energy’s California assets
ORANGE, Calif. -- SC Fuels has agreed to swap its Texas-based operations with Pilot Energy Services (formerly known as Maxum Petroleum Inc.) in exchange for Pilot Energy’s California land-based business and southwest operations.
The two companies have signed a definitive agreement that will see SC Fuels take on the California businesses formerly known as General Petroleum and CL Bryant, as well as the Canyon State Oil business in Arizona, Nevada, New Mexico, Texas and Colorado. In exchange, Pilot Energy will receive the business formally known as United Fuel & Energy (UFE) that is primarily located in Texas, as reported in a Raymond James/CSP Daily News Flash yesterday.
The transaction does not affect either the traditional wholesale operations of SC Fuels in the same geographies or the marine business of Pilot Energy. The transaction is scheduled to close on January 31, 2013.
“Maxum’s West Coast assets complement our geographic footprint and fit well within our core markets,” said SC Fuels’ chief operating officer, Steve Greinke. “This acquisition will add significant long-term value to our company and provide SC Fuels the opportunity to strengthen our market presence in the Western U.S. and leverage our operating platform.”
M. David Hughes, president of Pilot Energy Services, said, "We are pleased to increase our presence in UFE’s markets, and to welcome these new customers and employees to our business. We believe this base of business will provide us with a platform to increase our growth in the largest areas of Texas and position Pilot Energy to continue to grow by capitalizing on its procurement and logistics expertise, strong refiner relationships, broad distribution platform, enterprisewide information technology systems and experienced management team."
UFE is a leading value-added, specialty distributor of fuel and lubricant products and services to industrial and commercial customers. UFE, headquartered in Midland, Texas, is one of the largest fuel and lubricants distributors in the South Central United States. UFE’s president, Joe Juliano, acknowledged the value and contributions from the UFE’s management and staff, saying that “because of UFE’s outstanding team, the company is a leader in serving the energy markets in its territories.”
Established in 1930 as Southern Counties Oil Co., SC Fuels is the oldest and largest petroleum distributor on the West Coast. Serving over 35,000 customers annually, SC Fuels delivers commercial bulk fuels, wholesale branded fuels and alternative fuels. SC Fuels also is a leading provider of commercial cardlocks and provides mobile on-site fueling.
Pilot Energy is one of the largest independent energy logistics companies in North America, selling and distributing more than 1.3 billion gallons of refined petroleum products and serving 15,000 customers. Pilot Energy’s services include a comprehensive offering of fuel and lubricants, as well as a wide array of value-added logistics and energy management services to a diverse industrial customer base.
The financial terms of the transaction were not disclosed. Stephens Inc. represented SC Fuels in the transaction.