SC Fuels, Pilot Energy Agree to Business Swap
ORANGE, Calif. -- SC Fuels and Pilot Energy Services are talking trade. Specifically, locally-based SC Fuels will swap its Texas-based operations for Pilot Energy's California land-based business and southwest operations.
Pilot Energy was formerly known as Maxum Petroleum Inc.
Under a definitive agreement both companies signed, SC Fuels will take on the California businesses formerly known as General Petroleum and CL Bryant, as well as the Canyon State Oil business in Arizona, Nevada, New Mexico, Texas and Colorado. In exchange, Pilot Energy will receive the business formally known as United Fuel & Energy (UFE) that is primarily located in Texas.
"Maxum's West Coast assets complement our geographic footprint and fit well within our core markets. This acquisition will add significant long-term value to our company and provide SC Fuels the opportunity to strengthen our market presence in the Western U.S. and leverage our operating platform," said SC Fuels' COO Steve Greinke. "We are very pleased to welcome the Maxum West team to SC Fuels."
According to a notice on SC Fuels website, the transaction does not affect either the traditional wholesale operations of SC Fuels in the same geographies or the marine business of Pilot Energy. The transaction is scheduled to close on Jan. 31, 2013.
"We are pleased to increase our presence in UFE's markets, and to welcome these new customers and employees to our business. We believe this base of business will provide us with a platform to increase our growth in the largest areas of Texas and position Pilot Energy to continue to grow by capitalizing on its procurement and logistics expertise, strong refiner relationships, broad distribution platform, enterprise-wide information technology systems, and experienced management team," said M. David Hughes, president of Pilot Energy Services.
UFE is a value-added, specialty distributor of fuel and lubricant products and services to industrial and commercial customers. UFE, headquartered in Midland, Texas, is one of the largest fuel and lubricants distributors in the South Central United States.
Established in 1930 as Southern Counties Oil Co., SC Fuels is the oldest and largest petroleum distributor on the West Coast. Pilot Energy 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 more than 15,000 customers.