Pilot Flying J is to acquire a controlling interest in Maxum Petroleum for cash and Pilot Flying J’s contribution of Western Petroleum into Maxum.
Current investors, including Maxum management, Metalmark and Waud, will re-invest in the new venture.
Maxum is one of the largest independent energy logistics companies in North America, selling and distributing over 1.3 billion gallons of refined petroleum products and serving over 15,000 customers.
Jimmy Haslam, Pilot Flying J president and chief executive, says: "The acquisition of Maxum offers us an excellent growth opportunity and we are very excited to increase our participation in this industry. Maxum’s management team and talented workforce have demonstrated commitment and leadership in executing their business plan and delivering value to their customers and suppliers. Maxum will continue to operate as an independent stand-alone business under the leadership of CEO Perot Bissell."
"The management team of Maxum Petroleum is very pleased to have Pilot Flying J as a partner," says Perot Bissell, Maxum Petroleum’s chief executive. "Pilot Flying J’s investment in our business is a strong validation of the strategy and vision we have been pursuing since 2004. We will continue to provide our customers with high quality and reliable delivery with a strong focus on value added services and solving our customers’ unique logistics requirements. We are also delighted to welcome the Western Petroleum team to Maxum. The addition of Western Petroleum’s people and network of logistics assets will be a strong addition to our distribution platform."
Closing of this venture is subject to customary closing conditions, including expiration or early termination of the waiting period under the Hart-Scott-Rodino Act. Pilot Flying J is being advised by Stifel Nicolaus Weisel and White & Case. Maxum is being advised by JP Morgan, BofA Merrill Lynch and Kirkland & Ellis.
