JOBBERSWORLD...MARKET INTELLIGENCE FOR INTELLIGENT MARKETERS...  The First and Only Independent Newsletter to Focus on Lubricant Distributors.

Keller-Heartt Oil, a full-service Shell Oil alliance lubricants distributor serving the automotive, industrial and trucking industries announced the acquisition of Lou-Bob Corporation, a Chicago-based oil company founded in 1924.

"Keller-Heartt is very excited about this acquisition because of the company's loyal customer base," said Brian McGrath, president of Keller-Heartt and second- generation owner. "I have been competing against Lou-Bob for more than 25 years and know first-hand how loyal their customers are. Now we are all part of Keller-Heartt Oil."

Lou-Bob Founder Bob Goldman named the company after his two sons Lou Goldman and Bob Goldman, Jr. Over the years the company successfully marketed lubricants to Chicago companies, building a reputation for reliability and high-quality products. Owner Kent Kennedy purchased the company from the Goldmans in 1976 and will stay active as a consultant for Keller-Heartt. "I feel confident that I will be providing a great value to our customers by selling the business to a well respected company that will treat them well," said Kennedy.

Over the last 15 years Keller-Heartt has acquired several well-established family businesses including Sweeney Oil, Bell Fuel lubricants division, and Wholesale Oil. Terms of the Lou-Bob transaction were not disclosed.

"We will continue the great tradition of outstanding customer service our founders started," said McGrath. "We look for acquisitions that mirror our values and quality of products." Combining the strength of Shell Oil products with Keller Heartt's customer focus, McGrath believes the company will continue to make a major impact in the Chicago market.

About Keller-Heartt Oil.

Established in 1929, Keller-Heartt Oil built its reputation on ready deliveries, technical and logistics expertise, and customer-friendly service. In its 40,000 square foot warehouse in Chicago, Keller-Heartt maintains a complete inventory of lubricants for bulk, drum, and packaged goods. A truck fleet services the Chicago and northwest Indiana region and a staff of technical experts provides usage recommendations for customers. Petroleum products can be purchased throughout the continental United States and worldwide through Keller-Heartt's one stop solution e-commerce website. In addition to Shell Oil products suppliers include Pennzoil, Oil Eaters, Quaker State, WD-40 and other leading manufacturers. For more information visit www.kellerheartt.com   

Pilot Flying J to Acquire Western Petroleum     

Game Changer?

Pilot Flying J announced that Western Petroleum LLC (formally Western Petroleum, Inc.) has agreed to be acquired by Pilot Flying J.

For the few who may not be familiar with Pilot Flying J, the company is headquartered in Knoxville, Tennessee, and is one of the nation's largest wholesale fuel providers; delivering over 500 million gallons of fuel to thousands of customers in 47 states and eight Canadian provinces. They operate over 550 retail locations across North America and the company is the largest operator of travel centers and travel plazas in North America.

Clearly Pilot Flying J is a Big Kahuna in the fuels business. In addition to fuels, they are a significant player in the retail lubricants business. The company has a private label lubricant brand and added to its market muscle in lubricants last year when they signed an agreement with ConocoPhillips to offer Kendall brand lubricants at its 550 Pilot Flying J truck stops and travel centers.

Now fold in the business of Western Petroleum; another leading marketer of  transportation fuels. They sell approximately 200 million gallons of fuel a year. In addition, as a leading marketer for Chevron and ConocoPhillips lubricants, they too are a significant player in the lubricants business.   

It will be interesting to see how this acquisition plays out.  

Some say it's all about fuels and the lubricants business of both companies will likely be back seated, or maybe even spun out of the mix in an effort to focus on the core business of fuels. Others, however, say this could be a game changer. One where a company with expertise and excellence in the transport business raises the bar on how the lubricant distribution business is run and how the majors interact with the big boys in the fuel and lubricant distribution business; a big business the majors helped create.

The closing of the Wood River plant will also result of closing of a distribution plant in O'Fallon.

Shell says the distribution center will close at the end of the year, while the Roxana plant will close at the end of 2013.