Golden Gate Sells Bay Area Diablo Division
Parkland Acquires Bradco Inc.
SC Fuels Acquires SoCo Group, Sells Its Southwest Assets

GOLDEN GATE SELLS BAY AREA DIABLO DIVISION

MARTINEZ, CA. — Golden Gate Petroleum sold its Bay Area Diablo Petroleum division at the end of 2018. Terms of the sale were not disclosed.

The Bay Area Diablo Petroleum assets were split between two buyers: Hunt & Sons, which purchased the lubricants division, and Diesel Direct, which purchased the on-site mobile refueling assets.

Sacramento-based Hunt & Sons will add Bay Area Diablo's lubricant business to its existing Chevron, Valvoline, Havoline and Phillips 66 distribution business in California and Nevada.

According to Diesel Direct, they acquired a book of business including approximately 1,000 commercial, industrial, municipal, and other equipment-related customer sites in California to supply with diesel, gasoline and DEF.

"Diesel Direct is very excited to grow its northern California business with this highly strategic acquisition," stated William McNamara, CEO of Diesel Direct, announcing the deal. "The transaction provides us with the ability to further enhance our leading position in this region and expand our sustainable energy focus. We are committed to providing the highest-level service in the industry and earning the loyalty of the former Golden Gate customers."

Diesel Direct has been expanding its operations in the West in recent months. The company purchased the assets of On-Site Fuel Service in November after On-Site was unable to secure supply and shut its doors. The first On-Site office reopened by Diesel Direct was in Nevada "staffed 100% with On-Site employees."

PARKLAND ACQUIRES BRADCO INC.

HOLBROOK, AZ. — Parkland Fuel Corporation has signed a deal to acquire Bradco Inc., based in Holbrook, Arizona. The purchase price for the deal, which was announced at the end of November, was not made public.

Included in the deal are all of Bradco's assets including its gasoline, diesel, kerosene, lubricant, and heating oil business in Northern Arizona and New Mexico including terminals, warehousing, and transports.

Also included were Bradco's four Pacific Pride cardlock facilities located in Holbrook, Show Low, Payson and Springerville, Arizona as well as all of the Bradco real estate assets used in its business operations.

"As third generation owners who have been in the fuel business since 1936, it is with pride that we unite with Parkland Fuel Corporation. We now have the ability to grow organically with the additional national resources and this will benefit our customers in the regions we serve," said John Bradley, Bradco president.

Bradco will operate under Parkland USA, a division of Parkland comprised of several Parkland wholly-owned subsidiaries.

"Parkland values Bradco's credible reputation as a regional leader in fuels and lubricants. Today's announcement adds another competitive advantage to offering multi-state fuel distribution in Arizona, New Mexico, Colorado and Utah," said John Jardine, Co-CEO of Rhinehart Oil and leader of the Rockies Regional Operating Center, Parkland USA, announcing the deal.

Jardine had been leading Rhinehart Oil until its recent acquisition by Parkland, Canada's largest independent fuel marketing company.

SC FUELS ACQUIRES SOCO GROUP, SELLS ITS SOUTHWEST ASSETS

ORANGE, CA. — SC Fuels, based in Orange, CA., has signed two major deals, the first to acquire a major distributor in California and a second to divest its holdings in the Southwest.

In the first deal, SC Fuels purchased The SoCo Group, based in Carlsbad, CA. The price for the distributorship was not disclosed.

Included in the deal were SoCo's assets including its service stations, transports, distribution centers in Southern California and Arizona as well as the company's book of business of service stations, quick lubes, marine, and agriculture. SoCo had marketed branded fuel from the Chevron, Shell, Valero, and Spirit brands.

"The SoCo Group compliments our geographic footprint and fits well within our core strategy of being leaders in our markets," said Steven Greinke, CEO of SC Fuels, announcing the deal.

"The combination creates a stronger company, better able to serve our valued customers, optimize our combined assets and expand upon our supplier relationships."

The sale of The SoCo Group closed on October 29.

After adding market share through the acquisition of SoCo, SC Fuels sold its Southwestern assets to West Direct Oil Inc., and its Diesel Direct division in a deal similar to the Bay Area Diablo Petroleum sale (see Golden Gate Sells Bay Area Diablo Division).

Diesel Direct acquired the fleet fueling, wholesale distributor, and DEF book of business of SC Fuels, approximately 1,800 customers.

The purchase price, which includes the territory of Arizona, Nevada, Colorado, New Mexico, and Texas, was not disclosed.

SC Fuels' wholesale division "will continue to provide full tractor trailer sales throughout this geography and provide its full range of services in its other markets."

"Our decision to sell the Southwest commercial region is a difficult one," said Greinke. "However, it fits our long-term strategy of reinvesting in our core business units in our high-density markets."

Greinke continued, "We believe West Direct Oil is an excellent acquirer of our employees and customers given their proven track record of providing high levels of support and tools to their valued team and customers throughout the U.S."

Originally published in the February 2019 issue of O&A Marketing News.
Copyright 2019 by KAL Publications Inc.