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Jobbers World News
August 17, 2009

  • Maxum Petroleum Acquires Mid-State Industrial Lubricants Co.
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  • Maxum Petroleum Acquires Mid-State Industrial Lubricants Co.

    Maxum Petroleum, Inc., a leading energy logistics company announced on Friday the acquisition of Mid-State Industrial Lubricants Co. Founded in 1971 by the Shelton family and based in Summersville, WV, Mid-State is a leading supplier of industrial lubricants and fuels to commercial and industrial customers in Central Appalachia.

    Mid-State Industrial Lubricants is one of Citgo's leading distributors of lubricants in the US market. Although the company services all market segments, it is considered particular strong in coal mining and natural gas applications.

    The acquisition of Mid-State expands Maxum's existing operations in Central Appalachia and broadens its product portfolio with a well-respected distributor. It's important to note, that even prior to this acquisition, Maxum already enjoyed a leading presence in Central Appalachia through its Petroleum Products, Inc. subsidiary. Petroleum Products operates five bulk plant in West Virginia, Virginia, and Pennsylvania. In addition, the company's corporate office is in Belle, West Virginia, and it has a warehouse in Nitro, West Virginia. Petroleum Products Inc. distributes lubricants for Chevron, ExxonMobil, and ConocoPhillips.

    JobbersWorld is told, the employees of Mid-State, including its President and majority owner Ed Shelton, will continue in their current roles as part of the expanded Maxum organization.

    Whereas Maxum Petroleum completed 12 acquisitions of fuel and lubricant marketers from 2004 to 2007, there were none in 2008, and the first half of 2009. The acquisition of Mid-States is the first deal done by Maxum in the past 18 months. And Maxum tells JobbersWorld, the company is now actively looking for new opportunities and is various stages of discussions with fuel and lubricant marketers. In JobbersWorld's view, this is an important point to consider since many deals were put on ice since the start of the recession. And Maxum's acquisition may be an indicator that the outlook for the lubricants business is starting to improve and consolidation may once again heat up.

    According to Maxum Petroleum's S-1 filings on October 25, 2007, the company sold close to 40 million gallons of lubricants and over 1 billion gallons of fuel. When one considers its acquisitions following that period, organic growth, and others, it's estimated the company's sales is currently on track for close to 50 million gallons of lubricant and roughly 1.3 billion in fuels in 2009. According to Petroleum Trends International, this makes Maxum the largest lubricant marketer in the US.

    About Maxum: Maxum Petroleum, Inc., based in 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 12 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, Paulson Oil and Mid-State Industrial Lubricants. In January 2009, Maxum received a $300 million equity investment from leading private equity firms Metalmark Capital and Waud Capital Partners to further its consolidation strategy.


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