Independent fuel distributor Offen Petroleum has signed a binding agreement to acquire the business assets of another independent fuel distributor, Overland Petroleum.
“This transformative acquisition nearly doubles the size of Offen and creates a leader in the greater Rocky Mountain region,” said Jay Coughlon, managing partner of Denver-based private-equity firm Lariat Partners. Offen is a portfolio company of Lariat. “Offen has outperformed our expectations with strong organic growth and continued investment in people and systems while maintaining industry-leading safety performance,” he said.
“The addition of Overland’s strong management team deepens our already strong executive bench and enhances our ability to continue growing. We continue to pursue acquisition opportunities that will strengthen our existing operations as well as penetrate new geographic markets.” Offen provides motor fuel, lubricants and petroleum logistics services in Colorado and 12 surrounding states.
Based in St. George, Utah, and owned and operated by the Snow and Ipson families, Overland has focused its growth in recent years by delivering branded fuel to independent convenience-store retailers. It has focused on the Sinclair brand, but it also offers Conoco, Phillips 66 and the brands licensed by Andeavor.
In addition to these branded relationships, like Offen, Overland distributes wholesale gasoline and diesel fuel to unbranded fuel retailers and commercial customers in the Rocky Mountain and Southwest regions of the United States. Overland controls its own fleet of tankers and operates in Utah, Arizona, Nevada, Idaho, Colorado, Wyoming, Montana and New Mexico.
With Overland, Offen will deliver nearly 1 billion gallons of motor fuel annually and will operate as both a branded and unbranded wholesale motor fuel distributor in 12 states. In addition to motor fuels, Offen also sells lubricant products and solutions for the commercial, industrial and passenger-car segments, as well as diesel exhaust fluids (DEFs) used in emission controls.
“As leaders in our core markets, the combination creates a stronger company, better able to optimise the utilisation of our fleet assets and expand upon our supplier relationships as we continue to efficiently serve our valued customers,” Offen CEO Bill Gallagher said.