Offen Petroleum (Offen), an independent fuel distributor, is acquiring the business assets of Petromark, a motor fuel distributor, and Petromark Transportation, its affiliate trucking company.
Offen is a provider of motor fuel, propane, lubricants, and petroleum logistics services in 23 states in the Midwest and Western US The business combination further expands Offen’s footprint more deeply into Arkansas, Missouri, and Oklahoma.
Petromark is owned jointly by Stephen Lair and Steve Turner and is a significant wholesaler of motor fuels in Arkansas, Missouri, and Oklahoma. The company sells branded motor fuels under the Shell, Phillips 66, Valero, Sinclair, Conoco and VP Racing banners while also selling unbranded motor fuel to retailers. Steve Turner will be an advisor to Offen Petroleum and will assist with the continued growth of the business.
“I am very pleased that we are able to add such a successful business to further the growth of Offen Petroleum. Petromark is a perfect fit to the Ozark Mountain Energy business, which we acquired in December of last year,” says Bill Gallagher, CEO of Offen Petroleum. “Petromark allows us the opportunity to strengthen our contract dealer business and deepen our presence in the Ozark Region. Additionally, I am pleased that Steve Turner will be joining us to share his wealth of experience, knowledge and dedication to his customers that has made his company so successful.”
The transaction is expected to be completed on 18 May with combined operations under the Offen Petroleum name starting on 19 May.
“Stephen and I have enjoyed the experience of operating in both the retail and wholesale fuel businesses through the years and we are pleased that a company, such as Offen, with the same dedication to operational excellence will continue to serve our valued customers,” says Steve Turner. “I look forward to working with Bill and his team as we jointly grow this business.”
Downstream Energy Partners LLC (“DEP”) provided exclusive merger and acquisition advisory services to Petromark. DEP is a leading investment bank specializing in M&A advisory services to middle market companies within the downstream energy sector and is comprised of professionals who have decades of experience as both owner/operators and strategic financial advisors to energy companies. “Offen Petroleum is acquiring high quality wholesale fuel supply assets in a location strategic to their expanding footprint,” said Jeff Traub, Partner of DEP, adding, “Messrs. Lair and Turner built an exceptional company and it’s been a pleasure representing them in this transaction.”