Chesapeake Acquires Skyline


Motor oil distributor Chesapeake Petroleum acquired the business of Skyline Oil, broadening its market from Maryland into Virginia. The price was not disclosed.

We have known the owners of Skyline for probably 35 to 45 years, and have had a very good relationship with them, Chesapeake vice chairman and CEO Tony Santy told Lube Report. The fact that it is going to help us protect our western borders certainly also played a part in it. They complement our western geography.

Winchester, Va.-based Skyline serviced a market ranging from Leesburg, Va., west to parts of West Virginia, and southwest down to Strasburg, Va., along with parts of Maryland. Chesapeake of Gaithersburg, Md., services the mid-Atlantic region, primarily the Baltimore and Washington D.C. areas.

The acquisition of Skyline adds Shell, Pennzoil and Quaker State brands to Chesapeakes portfolio of lubricants. They also handle Motorcraft, Mopar and Kendall, Santy added. Chesapeake specializes in passenger car motor oils, both bulk and packaged, including Mobil, Castrol, Motorcraft, Mopar and Exxon.

He noted Chesapeake was a Quaker State distributor about 10 years ago, and wanted to get back to representing the brand. The Shell Rotella brand should also give it an opportunity to go after the fleet, commercial and industrial markets, he added.

Chesapeake will inherit 15 Skyline employees. We intend to keep as many as want to stay with us, Santy asserted. He pointed out Skylines property in Winchester will still be owned by David Sunter, who will rent it to Chesapeake.

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