Stamford Connecticut-Private Equity Firms Waud Capital Partners, LLC, Northwest Capital Appreciation, Inc., RBC Capital Partners and Cadent Energy Partners, LLC Announce the Acquisition of Two Leading Fuel and Lubricant Distribution Businesses
September 18, 2006 - Today SPI Petroleum, LLC and Global Petroleum, Inc. ("Global Petroleum" or the "Company") announced the acquisition of Pecos, Inc. and Canyon State Oil Company, Inc., two of the nation's premier marketers of fuels and lubricants. Global Petroleum is a holding company with a diverse portfolio of leading petroleum marketing companies. Headquartered in Rancho Dominguez, California, Pecos was founded in 1946 to service the fishing fleets and work boats of Los Angeles and Long Beach Harbors and has since evolved into one of the largest suppliers of fuels, lubricants and petroleum related value-added services to the marine, commercial and industrial sectors on the West Coast with annual sales of over $800 million. Headquartered in Phoenix , Arizona , Canyon State was founded in 1976 by the Arndt family and has established itself as the preeminent supplier of lubricants and fuels to the commercial, industrial and automotive markets in the Southwest with annual sales of over $225 million.
Pecos and Canyon State will operate as wholly-owned subsidiaries of Global Petroleum and will continue to market under their existing General Petroleum, Rainier Petroleum, GP Atlantic, Marine Oil Service, and Canyon State names. With the addition of Pecos and Canyon State , the Company will be one of the largest independent marketers of petroleum products and value added services to commercial customers in the United States . The senior management teams from Pecos and Canyon State will continue in their present roles with their respective companies.
"We are thrilled to welcome Pecos and Canyon State to our family of companies as they each have long proven track records for quality and customer service that are second to none." said Perot Bissell , CEO of Global Petroleum. "Each of these businesses has been recognized as the premier provider of customer satisfaction and quality assurance by their respective supply partners. These acquisitions compliment the operations of our first platform acquisition, Simons Petroleum."
"We are excited about the possibilities for our customers and employees and being part of a larger enterprise that shares our goals and values", noted John Zar, the President of Pecos. "The scale of the combined operations and financial backing of three private equity groups will allow us to better serve both our supply partners and our customers, and allow Pecos to share best practices and cross marketing opportunities with our new sister companies."
"By joining forces with our new partners we will be able to continue our growth plans throughout the Southwest and into the Rockies ", noted Tom Arndt, the President of Canyon State. "The ability to access new expertise in fuel procurement will allow Canyon State to provide even better service to our expanding customer base. We also look forward to continuing the geographic expansion of our automotive, commercial, and industrial lubricants business."
"These acquisitions are the realization of the vision I had when I partnered with the private equity firms, Northwest Capital Appreciation, Waud Capital Partners, and RBC Capital Partners two and a one half years ago," stated Roger Simons, the CEO of Simons Petroleum. "We are building a company with unparalleled capabilities in the fuel and lubricant distribution business with a long-term strategy for providing high quality and value added services to our growing customer base."
Highlight - About Global Petroleum and SPI Petroleum, LLC
Global Petroleum, based in Stamford , Connecticut is a wholly owned subsidiary of SPI Petroleum LLC, an acquisition vehicle formed by three leading private equity firms, Northwest Capital Appreciation, Inc., Waud Capital, LLC, and RBC Capital Partners to consolidate the fragmented commercial fuel and lubricant distribution industry. Over the past two and one half years the Company acquired Simons Petroleum, Inc., Hartney Fuel Oil Co., Trevco, Inc. and McLain Truck Service, Inc. Certain energy investments for RBC Capital Partners, including SPI Petroleum LLC, are managed by Cadent Energy Partners. In conjunction with the acquisitions of Pecos and Canyon State , the Company has replaced its existing credit facilities with PNC Bank, National Association with a $340 million credit facility co-led by PNC Bank, National Association and JPMorgan Chase Bank, N.A. Additionally, Global Petroleum received a 'B' corporate credit rating from Standard & Poor's Ratings Services and a 'B2' corporate rating from Moody's Investors Service.
For more information, contact Perot Bissell at 206-689-5624.
