Cadence Petroleum Group has obtained a new private equity investor, and the new backer plans to accelerate the expansion of the growing lubricant distributor.
Wellspring Capital Management, of New York City, announced last week that it acquired Asheboro, North Carolina-based Cadence in partnership with unspecified management. In doing so, Wellspring acquired the interest of Cadence’s previous backer, Tenex Capital Management, also of New York.
Neither Wellspring nor Cadence disclosed terms of the deal nor the share of the company that Wellspring now owns.
Cadence consists of several lube distributors that joined up the past three years. Pugh Lubricants, Apollo Oil and Veteran’s Oil, based in Asheboro, North Carolina, in Winchester, Kentucky, and in Bessemer, Alabama, respectively united in 2017, after Tenex invested in Pugh the previous November. In January of 2019, two more companies were acquired: Halco Lubricants of Norcross, Georgia, and Mid-South Sales of Jonesboro, Arkansas. Earlier this year Cadence acquired Davison Fuels & Oil of Mobile, Alabama.
Cadence’s footprint now extends across the Southeastern United States and north into Ohio, West Virginia and Virginia. Wellspring said more acquisitions should follow.
“We look forward to working with the Cadence team to accelerate the company’s growth trajectory and acquisition strategy,” Naishadh Lalwani, a Principal at Wellspring, said in last week’s news release.
Cadence is one of several lube distributors that have grown into large players in recent years as the market underwent significant consolidation.