DENVER — Offen Petroleum, reportedly one of the largest fuel distributors in the Western United States, is set to grow even bigger with its announced acquisition of Phoenix-based Allied Energy.
Offen, a portfolio company of Denver-based private-equity firm Lariat Partners, supplies fuel, lubricants and petroleum logistics services in Colorado and 12 surrounding states. Since Lariat Partners made a strategic investment in Offen in January 2018, the fuel distributor has been in growth mode, acquiring Overland Petroleum in September 2018, a deal that effectively doubled its reach in the Rocky Mountain region.
With this latest acquisition, Offen expects to expand its presence in Nevada and Arizona. Allied Energy is owned and operated by Gabe McLure, and it has focused on supplying unbranded fuel to other distributors and retailers, plus selling wholesale gasoline and diesel to national retail chains and commercial customers. After the deal closes in May 2019, the business will operate as Offen Petroleum.
“We are delighted to welcome Gabe McLure and his Allied team to Offen,” said Bill Gallagher, CEO of Offen. “Gabe shares many of Offen’s core values, including drive, accountability and a culture of execution excellence for customers. Allied’s strength in Arizona and Nevada provide Offen with opportunities in the Phoenix, Tucson and Las Vegas markets and will further enhance Offen’s ability to sell and deliver motor fuels for our valued customers. Offen will continue to pursue acquisition opportunities that would allow us to serve a broader customer base and provide density in our core areas while exploring adjacent geographies.”
In a 2018 interview, Gallagher told CSP Daily News that Offen was working to hit 5 billion gallons per year in annual volumes through acquisitions. With the Allied purchase, Offen will distribute 1 billion gallons annually and supply branded and unbranded wholesale fuel in 13 states.