Four of the nation’s largest ExxonMobil distributors
have announced plans to consolidate operations and
form a new company, PetroLiance LLC. The four
companies are Boncosky Oil Company of Chicago;
Commercial Ullman Lubricants Company of Ohio;
Lubricant Technologies LLC, which is active in North
and South Carolina, and Georgia; and Young Oil
Company of South Florida.
By combining the resources of the four companies,
PetroLiance will be, by far, the largest ExxonMobil
distributorship in each of the markets in which it
operates, said Kevin McCarter, speaking on behalf of
the new organization. McCarter will serve as chief
executive officer.
“Given the scale of this consolidation, and the
resources driving it, we believe this is a breakthrough
alliance. It is a strong signal of an emerging industry
trend that will continue to build real momentum,” said
McCarter. “This new partnership is united by a vision
of enhanced customer service, innovative business
strategies and robust growth.” He also noted the
new company would have annual sales of nearly $300
million, which means the new company will
immediately be a major force in the industry.
“These four founding companies will form four rock
solid anchor positions,” explained Michael Solitt, who
will be PetroLiance’s acquisitions manager. “From
here, we plan to build bridges to other parts of the
national distribution system over the next few years,
and will be inviting other quality companies to join us
as our alliance grows.”
Solitt added that PetroLiance plans to play a leading
role in shaping the continuing consolidation of the
petroleum industry. He pointed out that since the
late 1960s, the number of individual companies
distributing petroleum products in the United States
has shrunk by two-thirds, while the average sales
volume of each distributor increased five-fold.
“Clearly, the consolidation trend will be continuing, so
our companies agreed to form PetroLiance in an
effort to help shape this trend in a way that is
beneficial for everyone concerned,” he said. “Our
vision was not to consolidate for the sake of getting
bigger. Our vision was to consolidate to get even
better – better for our customers, our suppliers and
our employees.”
Scott Lane, who will serve as chief marketing and
technology officer of PetroLiance, noted that all four
founding companies had won numerous awards from
ExxonMobil for superior customer service and growth
over the years, including the coveted Circle of
Excellence Award. That emphasis will drive the new
organization as well, he said.
“For most of its history, our industry has been
fundamentally product-driven,” he explained. “We
had a product to sell, and our job was to find
customers who could use that product, sell it to
them, and then deliver it.
“At PetroLiance we intend to turn that
model around. We will use our combined marketing
expertise to determine what our customers really
need in terms of both products and services, and
then find a way to develop and deliver those in the
most cost-effective manner. We plan to invest
significantly in customer research – finding out
exactly what our customers expect.
“This is a fundamentally different way of thinking,
and will help make PetroLiance a genuine catalyst for
change in our industry,” he added.
PetroLiance will continue to offer
ExxonMobil products exclusive of any other supplier
brand. In addition, the company will also offer high-
quality lubricants under the Medallion PlusŪ brand,
along with a growing array of ancillary product and
services.
“The launch of PetroLiance means our
customers will now have a strategic partner that is
committed to providing the products and services
they need to minimize their total cost of ownership
while improving their own performance and
productivity,” said Lane. “We will be able to combine
the service and attention of a local company, with
the strength and depth of resources only a national
company can provide.”
He said the company plans to devote considerable
attention to further developing and deploying new
technologies, such as remote telemetry, automated
scheduling, electronic invoicing, Web-based
marketing and other applications.
“Each of our individual companies had
worked hard in these areas,” he said. “ But as
PetroLiance, we’ll be able to leverage our resources
and leap forward even more dramatically.”
Headquartered in Elgin, Ill., Boncosky Oil Company
distributes industrial petroleum products, automotive
and commercial lubricants, fuels, distillates, and
other related products throughout Northern Illinois
and surrounding areas. Commercial Ullman Lubricants
Company, headquartered in Cleveland, serves
customers throughout Ohio and western
Pennsylvania, offering heavy-duty lubricants and a
full line of metalworking fluids such as coolants,
cleaners, drawing compounds and rust inhibitors.
Lubricant Technologies LLC, based in Cary, N.C.,
distributes industrial petroleum products, automotive
and commercial lubricants, marine lubricants,
commercial fuels, distillates and other related
products throughout North Carolina, South Carolina,
eastern Georgia and Northern Florida. Young Oil
Company, headquartered in Pompano Beach, Fla.,
serves automotive, commercial and industrial
customers throughout South Florida and the
Caribbean.