Maxum Petroleum, Inc., a leading energy logistics
company announced on Friday the acquisition of
Mid-State Industrial Lubricants Co. Founded in 1971
by the Shelton family and based in Summersville, WV,
Mid-State is a leading supplier of industrial
lubricants and fuels to commercial and industrial
customers in Central Appalachia.
Mid-State Industrial Lubricants is one of Citgo's
leading distributors of lubricants in the US market.
Although the company services all market segments,
it is considered particular strong in coal mining
and natural gas applications.
The acquisition of Mid-State expands Maxum's
existing operations in Central Appalachia and
broadens its product portfolio with a well-respected
distributor. It's important to note, that even prior
to this acquisition, Maxum already enjoyed a leading
presence in Central Appalachia through its Petroleum
Products, Inc. subsidiary. Petroleum Products
operates five bulk plant in West Virginia, Virginia,
and Pennsylvania. In addition, the company's
corporate office is in Belle, West Virginia, and it
has a warehouse in Nitro, West Virginia. Petroleum
Products Inc. distributes lubricants for Chevron,
ExxonMobil, and ConocoPhillips.
JobbersWorld is told, the employees of Mid-State,
including its President and majority owner Ed
Shelton, will continue in their current roles as
part of the expanded Maxum organization.
Whereas Maxum Petroleum completed 12 acquisitions of
fuel and lubricant marketers from 2004 to 2007,
there were none in 2008, and the first half of 2009.
The acquisition of Mid-States is the first deal done
by Maxum in the past 18 months. And Maxum tells
JobbersWorld, the company is now actively looking
for new opportunities and is various stages of
discussions with fuel and lubricant marketers. In
JobbersWorld's view, this is an important point to
consider since many deals were put on ice since the
start of the recession. And Maxum's acquisition may
be an indicator that the outlook for the lubricants
business is starting to improve and consolidation
may once again heat up.
According to Maxum Petroleum's S-1 filings on
October 25, 2007, the company sold close to 40
million gallons of lubricants and over 1 billion
gallons of fuel. When one considers its acquisitions
following that period, organic growth, and others,
it's estimated the company's sales is currently on
track for close to 50 million gallons of lubricant
and roughly 1.3 billion in fuels in 2009.
According to Petroleum Trends International, this
makes Maxum the largest lubricant marketer in the
US.
About Maxum: Maxum Petroleum, Inc., based in
Greenwich, CT, is a leading independent energy
logistics company that markets and distributes a
comprehensive offering of refined petroleum products
and services to commercial and industrial customers.
Maxum Petroleum is continuing a strategic growth and
acquisition plan in the fragmented commercial fuel
and lubricant distribution industry, launched in
2004 with the acquisition of Simons Petroleum. To
date, Maxum has completed 12 acquisitions of fuel
and lubricant marketers and facilities, including
Simons Petroleum, Trevco, Hartney, Pecos (including
its General Petroleum and Rainier Petroleum
subsidiaries), Canyon State Oil, Petroleum Products,
Paulson Oil and Mid-State Industrial Lubricants. In
January 2009, Maxum received a $300 million equity
investment from leading private equity firms
Metalmark Capital and Waud Capital Partners to
further its consolidation strategy. |
