Nashville, Tennessee-based distributor Parman Energy Group is extending its reach into the upper Midwest through acquisition of the Chevron-branded lubricants distribution business ofLube-Tech & Partnersin early March.
The Chevron business is a smaller portion of the overall lubricant portfolio of Lube-Tech & Partners, which will continue to be a lubricant distributor in the upper Midwest.
This is Parmans second acquisition in the past year. Last year it acquired distributor Star Petroleum, of Blytheville and Jonesboro, Arkansas.
The U.S. lubricants market in 2017 saw several significant consolidations market, including: a merger between Eastern United States distributors Pugh Lubricants and Apollo Oil; their subsequent purchase of Birmingham, Alabama-based Veterans Oil; RelaDynes separate acquisitions of Sensmeier Oil Co. in Ohio, Hager Oil in Alabama and Western Marketing Inc. in Texas; and PetroChoices acquisition of Miller Industrial Fluids LLC in Indiana.
Under terms of the agreement announced Feb. 2, Parman will acquire most of Lube-Techs Chevron-centric customer base. Both Parman and Lube-Tech customers will continue to receive the same products and services they receive today.
Parmans upper-Midwest regional headquarters will be in St. Cloud, Minnesota, with additional distribution locations in Roseville, Minnesota, and Des Moines, Iowa. When the deal is completed, Parman will absorb Lube-Tech employees involved with customer service, sales, drivers and warehouse operations. Lube-Tech will continue to provide recycling, fuel, and equipment products and services to Parman customers.
Our entry into the upper-Midwest market is a key element in Parmans overall growth strategy, said Steve Moore, Parmans president and CEO.
Previous acquisitions by Parman included two distributors in Tennessee: Ward & White in Camden; and JAT Energy in Chattanooga.
Lube-Tech & Partners was formed in June 2016 by the founding companies of Boyer Petroleum in Des Moines, Lubrication Technologies in St. Paul and Moore Oil in Milwaukee, Wisconsin. Lube-Tech & Partners has operations in Iowa, Minnesota and Wisconsin and services commercial, automotive and industrial customers.
Parman Energy Group – formerly known as Parman Energy Corp. – delivers lubricant products, diesel exhaust fluid, motor fuels, petroleum equipment, coolants and related products, solutions and services.