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April 2019 Issue Highlights

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Automobility Los Angeles

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National Association of Convenience Stores Regional Luncheon

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Western Petroleum Marketers Association Convention

Want to see the photos that didn't make the issue? Check out the Cutting Room Floor.

LSC To Sell U.S. Assets to Amalie
Valvoline to Buy Terrible Herbst Quick Lubes
REG, Clariant, and ExxonMobil Partner to Advance Biodiesel Tech
Hayden Environmental Banned from California UST Fund Work
Belanger Acquired by Dover, Joins OPW

LSC TO SELL U.S. ASSETS TO AMALIE

PICO RIVERA, CA. — Lubricating Specialties Company, the largest independent lubricant blender in the Western United States, has signed a deal to sell its operations to Amalie Oil Co. The purchase price for the deal was not disclosed.

Included in the sale are LSC's four manufacturing and distribution facilities in the greater Los Angeles area. At the time of announcement in March, LSC had over 200 employees.

Based in Tampa, FL., Amalie is the largest independent lubricant manufacturer in the United States and operates facilities in Tampa and Charleston, SC. The company stated that "Together, the combined business will sell to and service lubricant product customers from what will be the strongest and most efficient platform in the industry."

Sydney Thwaites, CEO of LSC, stated, "Both companies have a rich history and strong culture of quality and service." He added, "We are excited about the synergies that combining the companies brings to enhance our ability to serve our customers at the highest level."

VALVOLINE TO BUY TERRIBLE HERBST QUICK LUBES

LEXINGTON, KY. — Terrible Herbst has signed a deal to sell 12 of its quick lube facilities to Valvoline Inc. The purchase price was not disclosed.

The company said the purchase was its first step in its plans to "expand its company-owned quick-lube network into the Las Vegas market."

Valvoline said they will rebrand the Terrible Herbst quick lubes with the Valvoline Instant Oil Change image.

In addition, Valvoline also purchased three existing VIOC service centers from a franchisee already operating in the Las Vegas market.

"A core element of Valvoline's business strategy is to grow and strengthen our industry-leading quick-lube network through organic store expansion and high-quality acquisitions in both core and new markets," said Tony Puckett, senior vice president and president, Valvoline Quick Lubes. "These two acquisitions will further expand our reach into markets where we previously had little presence. Our acquisition of the three VIOC franchised stores will enable our franchisee to focus on expanding its operations in the Albuquerque and Denver markets.

"Overall, this base of 15 company-owned locations will give us a great foundation to build on within the growing Las Vegas market."

The sale of the Terrible Herbst quick lubes was expected to close by the end of March.

REG, CLARIANT, AND EXXONMOBIL PARTNER TO ADVANCE BIODIESEL TECH

AMES, IA. — Renewable Energy Group (REG) has signed an agreement with Clariant to research the use of cellulosic sugars to produce biofuel.

REG was already working with ExxonMobil to "bio-convert" sugars from cellulosic biomass — from sources like agricultural waste and residues — into biodiesel.

The three companies will now work together "to combine Clariant's and REG's processes into a seamless cellulosic biomass-to-biodiesel technology."

"ExxonMobil has been an exceptional partner in developing this promising technology," said Eric Bowen, vice president of REG Life Sciences. "We are delighted to be able to add Clariant to the team with its market-leading Sunliquid technology.

"We believe we have assembled a dream team for conversion of cellulosic biomass to low carbon biofuels and are excited about the promise of this collaboration," he added.

HAYDEN ENVIRONMENTAL BANNED FROM CALIFORNIA UST FUND WORK

SACRAMENTO, CA. — TKO Enviroservices, an environmental contractor based in Santa Barbara, CA., and its parent company, Hayden Environmental, have agreed to pay $100,000 and are permanently barred from work with California's Underground Storage Tank Cleanup Fund or administered by the State Water Board.

The ban is part of a settlement made with state regulators over fraud allegations.

In addition, the principals, Kurt and Julie Hayden, are also disqualified from all work involving the State Water Boards.

The company, which provided investigation and remediation services for sites contaminated by leaking underground storage tanks, including former gasoline stations, had worked at more than 30 sites in Santa Barbara and Ventura counties.

The ban and settlement is the latest in a series of charges leveled against the Haydens, Hayden Environmental, and TKO Enviroservices.

Criminal and civil allegations were filed by state investigators in May 2012 and July 2012. In May 2013, Kurt Hayden pled guilty to a felony charge and paid $1.6 million for submitting false documents to the Cleanup Fund.

In the latest action, the Santa Barbara District Attorney's office filed a criminal complaint on Sept. 28, 2017 against Julie and Kurt Hayden. Among charges levied against them were negotiating and receiving a credit for a portion of crane service costs, but submitting the full cost invoice to the Cleanup Fund; altering electricity bills to hide costs not eligible for reimbursement from the Cleanup Fund; billing staff at higher project management rates when they did not possess the requisite education or experience; and charging to lease storage space even though the expense was unrelated to the claim.

As part of the settlement, they each pled guilty to one count for a misdemeanor violation of the California Health and Safety Code.

BELANGER ACQUIRED BY DOVER, JOINS OPW

Carwash company Belanger Inc., has been acquired by Dover, effective as of January 25. The purchase price for the deal was not disclosed; Belanger generated approximately $55 million in sales in 2018.

Belanger will now become part of Dover's OPW division. PDQ, another carwash equipment manufacturer, has been a part of the OPW division for many years. Company officials did not comment whether both carwash brands will be maintained going forward.

"PDQ and Belanger are both very well-known names in the vehicle wash industry, in part because of their talented people and innovative products," said Gary Campell, Vice President of OPW Wash Solutions. "We're thrilled to bring the companies together, providing customers the benefit of our combined insights and product offerings."

"With the increasing popularity of commercial car washes, the vehicle wash solutions market is an attractive space where we intend to grow OPW," said Richard Tobin, president of Dover, announcing the deal. "We look forward to welcoming the talented team from Belanger."

Belanger employed approximately 150 people in the United States and was headquartered in Northville, MI.

Tobin added, "When combined with our PDQ business, one of our OPW brands, we will be able to offer customers a full breadth of products in this attractive market."


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

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