Simons Petroleum Inc. announced Thursday that it has purchased Colorado petroleum marketer Trevco. The acquisition completes the first step in Simons year-old strategy to become the largest oil jobber in the United States.
Simons did not disclose terms of the deal. Officials with the Oklahoma City-based company said it plans to use Trevco as a vehicle to expand sales in the Rocky Mountain region. Trevco already served as a delivery agent of lubricants, fuels and other products for Simons.
We were selling about a million gallons of lubricants a year through them to the Western Slopes, Financial Projects Manager Janet Schisser told Lube Report. We expect that number to increase pretty quick now because were trying to grow in that area.
Already one of the nations largest oil jobbers, Simons announced 13 months ago that it had secured $90 million in financing to fund a series of acquisitions, through which it planned to become the biggest. In last weeks announcement, the company said it now has $112 million in financing, including a $50 million equity commitment from three private equity firms.
This is the first one that weve completed under that plan, Schisser said, but we have a couple more in the works and hope to have some more announcements before too long.
Simons said it acquired most of the assets and business operations of Trevco, a family-owned business based in Craig, Colo. In addition to maintaining a 400-point fuel supply network, Simons operates 10 lubricant packaging and distribution plants, as well as two marine fuel and lubricant facilities.