Jobbers World News
December 8, 2008

  • Maxum Petroleum Receives $300 Million Investment from Metalmark Capital and Waud Capital Partners
  • Chevron, ExxonMobil, and ARG Announce Price Decreases
  • The Price Increases and Decreases of 2008
  • Contact Us With Your News

  • Maxum Petroleum Receives $300 Million Investment from Metalmark Capital and Waud Capital Partners

    Maxum Petroleum, Inc., a leading energy logistics company, today announced that it has reached a definitive agreement with leading private equity firms Metalmark Capital and Waud Capital Partners to invest $300 million in Maxum Petroleum. Following the close, Metalmark Capital and Waud Capital Partners will represent a majority of the board. Current investors Northwest Capital Appreciation and RBC Capital Partners will retain an equity interest in Maxum Petroleum.

    "The management team of Maxum Petroleum is very pleased to have Metalmark Capital as a new partner and to receive an additional investment from one of our founding investors, Waud Capital Partners," said Perot Bissell, Maxum Petroleum's CEO. "This significant investment reinforces our solid capital base and will help further extend our partnerships with our customers and suppliers, including facilitating the expansion of our footprint and our wide array of value added services. This is a strong endorsement of the success we have achieved in the rapidly consolidating energy logistics industry, and a validation of the strategy we have employed and will continue to pursue."

    "Maxum Petroleum has established the leading platform in the fuel and lubricant distribution industry and has a reputation for unique, customer focused solutions," said Howard Hoffen, Chairman and CEO of Metalmark Capital. "We look forward to working with the talented management team to capitalize on the tremendous opportunities presented in such a large and fragmented industry."

    Reeve Waud, Founder and Managing Partner of Waud Capital Partners commented, "As one of the founding investors in Maxum Petroleum, I have seen first hand what a great platform Perot Bissell and the senior management team have built. I am excited to increase our commitment to Maxum Petroleum and help it reach the next level."

    Maxum Petroleum, Inc., based in Old Greenwich, CT, is a leading independent energy logistics company that markets and distributes a comprehensive offering of refined petroleum products and services to commercial and industrial customers. Maxum Petroleum is continuing a strategic growth and acquisition plan in the fragmented commercial fuel and lubricant distribution industry, launched in 2004 with the acquisition of Simons Petroleum. To date, Maxum has completed 11 acquisitions of fuel and lubricant marketers and facilities, including Simons Petroleum, Trevco, Hartney, Pecos (including its General Petroleum and Rainier Petroleum subsidiaries), Canyon State Oil, Petroleum Products and Paulson Oil.

    Chevron, ExxonMobil, and ARG Announce Price Decreases

    Chevron advised its marketers this morning that the company will decrease its posted price on lubricants by up to 8% for bulk and packaged products. This general price decrease reportedly goes into effect on January 12, 2009.

    Although the decrease on posted prices will not go into effect until January 12, marketers say Chevron is also implementing a price adjustment equal to the same amount as the January decrease to take effect from December 9th until the time of the January posted price decrease.

    ExxonMobil also announced a price decrease today. Marketers say this decrease is roughly $0.45 a gallon and it takes effect today.

    ... and the American Refining Group(ARG) announced today a price decrease of up to $0.50 a gallon on its Gulf brand and selected private label, and unbranded lubricants.

    The Price Increases and Decreases of 2008

    Although it's very rare to hear a major oil company announcing a price decrease for lubricants, in just over the past month that's exactly what we heard from ConocoPhillips, Citgo, Shell, and as of today, Chevron, American Refining Group, and ExxonMobil. Each announced a price decrease and in most cases pointed to the dramatic drop in the price of crude as the reason why. And it certainly makes sense.

    To fully appreciate the dynamics of the recently announced price decreases, and where we might go from here, one needs to look at what happened with lubricant prices since the start of the year and why.

    Click below for Part I on Pricing

    Contact Us With Your News

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