Coast Oil, Kenan Advantage Make Fleet Conversion Deal

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Coast Oil, Kenan Advantage Make Fleet Conversion Deal

SAN JOSE, Calif. -- Coast Oil Co., based here, and Kenan Advantage Group (KAG), located in North Canton, Ohio, reached a private fleet conversion agreement that allows KAG to take over Coast Oil's fuel delivery operations and to serve Coast Oil's more than 100 retail dealers in Northern California.

Under terms of the agreement, which begins Oct. 1, 2009, KAG will purchase Coast Oil's private fleet of six truck and trailer units.

"We will always do whatever it takes to keep our customers supplied with product and this partnership is just another way to solidify that promise," said Mark Mitchell, owner of Coast Oil, which according to its Web site distributes Valero, ConocoPhillips and other brands. "By aligning ourselves with KAG, we significantly enhance our economies of scale with access to more than 5,000 drivers, 3,100 power units and numerous terminal facilities throughout California."

Coast Oil, founded in 1935, is one of the largest marketers of petroleum products in Northern California, with more than 875,000 gallons of aboveground storage. Coast Oil also owns 30,000 square feet of warehouse and office space. KAG will be leasing a portion of this space to better manage the newly acquired transportation operations.

"This is a tremendous opportunity for KAG, as it opens the door to new business while providing us with additional assets to grow our operations in Northern California," said John Jolly KAG's vice president of private fleet conversions. "We are pleased to be partnering with a company that has such a great reputation in the marketplace. It's a business relationship that should be extremely beneficial to both parties."

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