Dive Brief:
- Independent fuel distributor Offen Petroleum has acquired full-service wholesale fuel distributor Gas Depot Inc. for an undisclosed amount, according to a Wednesday announcement.
- The deal adds over 150 new gas stations and c-store customers to its books, along with a portfolio of municipal customers around Chicago, according to the announcement. It also adds to Offen’s fuel offerings, with brands such as Shell, Marathon, Citgo, BP, Exxon/Mobil, Gulf, Clark, and Gas Depot’s proprietary fuel brands.
- The deal is Offen’s ninth acquisition since 2015, further establishing the Commerce, Colorado-based company as one of the more active fuel distributors on the M&A front.
Dive Insight:
Each of Offen’s acquisitions over the past eight years has been of a fellow fuel distributor and has brought the company into new regions, such as Missouri and Arizona. Before Gas Depot, its most recent acquisition was in August 2022, when it acquired Denver-based G&S Oil for an undisclosed amount.
By acquiring Morton Grove, Illinois-based Gas Depot, Offen is entering the Chicago market and creating a new “Great Lakes Region” within the company, according to its website.
"This is a unique opportunity for us to acquire a high-quality portfolio of customers in one of America's largest markets,” Offen CEO Bill Gallagher said in the announcement.
Besides adding hundreds of new customers in the Chicagoland area, Offen will establish an operations center in Chicago and will be hiring Gas Depot’s operations employees, according to the announcement. The announcement also notes that Gas Depot will continue operating its existing chain of gas stations, although there is no indication of how many it owns.
Founded in 1999, Gas Depot operates multiple facilities throughout the Chicagoland area under its own proprietary label. Its wholesale distribution business extends to customers throughout the Midwest including Illinois, Wisconsin, Indiana and Missouri.
Offen provides fuel throughout most of the country except for the East Coast. It distributes over 2.4 billion gallons of fuel annually, according to the announcement. The company was founded in 1967.
