Offen Petroleum, one of the largest fuel distributors in the Western U.S., has agreed to acquire the business assets of Arizona-based fel distributor Allied Energy, Offen said in a statement. Going forward, the business will operate as Offen Petroleum.
The transaction is expected to be completed later this month.
Offen is a provider of motor fuel, lubricants, and petroleum logistics services headquartered in Colorado and operating in 12 surrounding states. The combination expands Offen’s presence in Nevada and creates new opportunities in the Arizona market.
Based in Phoenix, Allied Energy is an independent fuel distributor operating in Arizona and Nevada. In recent years, Allied has focused its growth by marketing unbranded fuel to fuel distributors and convenience retailers. Like Offen, Allied also sells wholesale gasoline and diesel to national retail chains and commercial customers.
Allied’s strength in Arizona and Nevada provide Offen with opportunities in the Phoenix, Tucson and Las Vegas markets, the company said in a statement, and will further enhance Offen’s ability to sell and deliver motor fuels to its existing customers. Offen will continue to pursue acquisition opportunities to serve a broader customer base and explore adjacent geographies.
With Allied, the company will distribute 1 billion gallons of motor fuel annually and will serve as both a branded and unbranded wholesale motor fuel distributor in 13 states. In addition to motor fuels, Offen also sells lubricant products and solutions for the commercial, industrial, and passenger car segments, as well as diesel exhaust fluids used in emission controls.
Offen Petroleum is a portfolio company of Lariat Partners, a Denver-based private equity firm that acquires companies across a number of industries, including specialty distribution, energy and environmental services, food and agribusiness, consumer products, and maritime services.
Allied was represented by Meridian Associates in the transaction.