COMMERCE CITY — Offen Petroleum is adding to its footprint in the Southwest with the acquisition of the wholesale business of W. Douglass Distributing Ltd. and its affiliates.
Based in Sherman, Texas, Douglass is a national leader in the propane, lubricant, and wholesale and commercial fuel businesses, and primarily serves customers in Texas and Oklahoma.
Douglass distributes more than 200 million gallons of fuel annually to 4,600-plus residential propane customers, 150 major wholesale customers, and more than 2,800 commercial fuel, lubricant and diesel exhaust fluid (DEF) customers. It also maintains an extensive fuel carrier business and operates in part through an agreement with Old World Industries in order to provide product transportation as well as on-site manufacturing of DEF, antifreeze and washer fluid products, the company said.
Additionally, a Douglass affiliate owns and operates 23 Lone Star Food Stores convenience stores in the north Texas area, which are not included in the sale to Offen.
The acquisition includes all of Douglass' wholesale facilities and the Sherman campus. Offen, which has served the Texas market for years, will make this its regional operations center through which it plans to continue growing in Texas and surrounding markets.
"We have built a strong and successful wholesale fuel business over the past 40 years and are proud of our hard-working and dedicated team members. We are pleased that Offen also recognizes the value and contributions of our team members, and, as a result, Offen will be retaining virtually all of the people who have supported our wholesale businesses," said Bill Douglass, CEO of W. Douglass Distributing. "I have known Bill Gallagher for many years and have been impressed by the operation he has built at Offen. I know that Offen's values align with ours and that our wholesale businesses and people will continue to thrive under their ownership and direction."
In 1947, Humble Oil (later known as Exxon) established a railroad bulk plant in Sherman and Gainesville, Texas. Bill Douglass purchased the Exxon consignee in Sherman, including the local Exxon Transport Division, Exxon Tank Wagon Division, Exxon Lubricants Division and Tires, Batteries & Accessories Division, in 1981 to establish Douglass Distributing with just three employees.
Today, family-run Douglass employs more than 340 people and is recognized as a leader in the c-store and wholesale fuel industries. Bill Douglass was inducted into the Convenience Store News Hall of Fame as the 2008 retailer inductee and served as NACS Chairman in 2004-2005.
"Bill Douglass is one of the most respected leaders in the fuels distribution industry, and he has created an elite and diversified distribution business. We are honored that Bill has trusted us to carry on his legacy in serving his customers, employing his people, and supporting the Northern Texas and Southern Oklahoma communities to make lives better," said Bill Gallagher, CEO of Offen Petroleum. "This acquisition will allow us to establish an operations center in Sherman, Texas, and we will hire the employees of the Douglass wholesale business. This business will serve as our platform to accelerate our growth in the Texas marketplace."
NRC Realty & Capital Advisors LLC served as exclusive financial advisor to Douglass Distributing during the transaction.