DENMARK, Tenn. -- Longtime CITGO- and Valero-branded marketer Jerry’s Oil Co. Inc. has divested its entire branded and unbranded dealer supply business as part of a strategic industry exit. The sale allows buyer United Fuel LLC to expand its CITGO dealer network, add Valero to its portfolio of major oil brands and extend westward into the Memphis geographic area.
“We are very happy to have successfully concluded the acquisition of the Jerry’s Oil dealer business and welcome these dealers as our new customers,” said Bunty Doshi, president of United Fuel, Stockbridge, Ga.
Founded in 1978 as a fuel wholesaler delivering fuel to one company-operated convenience store and one supply transport, Denmark, Tenn.-based Jerry's Oil expanded to 14 stores and six transports over the next decade. Later, the company decided to exit direct-store operations and move to a dealer supply operational model, including the sale of most of the stores to its dealers.
Today, the company operates eight transports and two tank wagons supplying fuel to retail locations in both Arkansas and Tennessee, some commercial customers and a single interstate convenience store directly owned and operated by the Wilhite family.
PetroActive Real Estate Services LLC, Coral Gables, Fla., provided confidential advisory services to Jerry’s Oil for this transaction.
“Success in today’s highly competitive dealer supply environment takes relentless focus and attention to the business. Jerry devoted his heart and soul to ensure that his business not only survived, but prospered,” said Mark Radosevich, president of PetroActive Real Estate Services.
Frank Callaway provided legal representation to Jerry’s Oil and closed the transaction. His firm is based in Atlanta and specializes in downstream petroleum distribution and real-estate transactions.
Murphy Business and Financial Services LLC, Clearwater, Fla., provided advisory services to United Fuel for this transaction.
“Jerry built a solid oil dealer business, and Bunty will now continue to build on that strong foundation. It was a pleasure to be part of a great team of professionals representing both companies,” said Mark Purtee, representative for Murphy Business. “As a result of a smooth transition, Jerry’s dealers will quickly enjoy the same prompt customer service and benefit from some new efficiencies that United Fuel will begin to implement.”