United Fuel & Energy Corp., a distributor of gasoline, diesel, propane and lubricant products to customers in the markets of the southwestern and south central U.S., reached a deal to acquire Cardlock Fuels System Inc., the cardlock operation of SC Fuels. SC Fuels operates 23 unattended fueling facilities throughout Southern California and has currently issued over 43 thousand
fleet fuel cards.
The transaction is expected to close within the next 45 days and is subject to the approval of United Fuel’s Board of Directors and Series A preferred shareholders and to other closing conditions, including the completion of United Fuel’s previously announced restatement of certain of its historical financial statements and the satisfaction of each party with the results of its respective due diligence investigation.
SC Fuels has been led by Frank P. Greinke, who will be the sole owner of the newly issued United Fuel & Energy common stock, once the transaction is completed.
“This acquisition is a significant milestone for United Fuel because it will give us the critical mass we need to take the company to the next level of growth,” said Chuck McArthur, United Fuel & Energy’s President and CEO. “By combining with SC Fuel’s cardlock operations, United Fuel will expand its operations in the western U.S. and be positioned to further increase operating efficiencies due to our larger size. We expect the transaction will increase our sales volumes and revenues by over 50%.”
