Offen Petroleum Enters New Region With Gas Depot Deal
COMMERCE CITY — Offen Petroleum completed the purchase of the wholesale division of Gas Depot Inc. and Gas Depot Oil Co. The acquisition is Offen's first into Chicagoland and the Great Lakes region.
The deal will add more than 150 new retail gas station/convenience store customers, along with a portfolio of municipal customers. Offen further plans to establish an operations center in Chicago and hire the operations personnel of Gas Depot.
Gas Depot was founded by current CEO George Nediyakalayil in 1999 and is a full-service wholesale distributor of motor fuels throughout the Midwest, including Illinois, Wisconsin, Indiana and Missouri. The company sells motor fuels under the Shell, Marathon, CITGO, BP, Exxon/Mobil, Gulf and Clark brands, as well as under its proprietary Gas Depot name and unbranded fuels. It also operates its own chain of gas stations, which it will continue to do after the transaction is complete.
"I am very pleased that we have been able to impact the fuel industry over the past 23 years, and now our team has chosen to redirect our efforts towards growing our other companies and businesses. Gas Depot has grown not just as a business but an extended family that has created lifelong opportunities and relationships," said Nediyakalayil. "While it is not easy to transition off this business, I know that Offen will be an excellent operator to continue the growth that we started."
Downstream Energy Partners and Trilla Consulting Group provided exclusive merger and acquisition advisory services to Gas Depot.
"George Nediyakalayil and his team of dedicated employees have created a successful business operating in a highly competitive marketplace, and I am very honored that the Nediyakalayil family has entrusted Offen to continue providing superior service to their customers," said Bill Gallagher, Offen CEO. "This is a unique opportunity for us to acquire a high-quality portfolio of customers in one of America's largest markets."
This is the second major expansion by Offen within the last year. In August, the company closed on the acquisition of the wholesale division of G&S Oil Products, adding 40 new customers throughout Colorado. That additionally comes on top of its purchase of Petromark’s business assets in 2021.
Commerce City-based Offen Petroleum distributes more than 2.2 billion gallons of motor fuel annually and serves customers throughout 40 states. In addition to branded and unbranded motor fuels, the company sells propane and lubricant products and solutions for the commercial, industrial and passenger car segments, as well as diesel exhaust fluids used in emission controls.
Offen Petroleum is a portfolio company of Court Square Capital Partners, a New York-based private equity firm with $7 billion of assets under management.