SPI Petroleum LLC moved a step closer to its goal of being the largest U.S. petroleum marketer with its acquisition last week of McLain Truck Service, Inc., a regional fuel and lubricant marketer based in Midland, Texas. Terms of the acquisition were not disclosed.
McLain is a supplier to commercial and industrial accounts, principally in oil drilling and exploration, in west Texas and New Mexico. It will operate as a division of Simons Petroleum, the operating company of SPI Petroleum.
The McLain acquisition provides SPI with additional physical infrastructure to serve customers in drilling and exploration, the company said, and will allow for efficiencies of scale. SPI expects significant sales and market-share growth, as Simons will be able to offer a nationwide single source of supply to the drilling and exploration market.
We continue to execute on our strategic growth strategy through acquisitions, as well as greenfield growth, said Simons CEO Roger Simons. McLain will provide us the asset base to ensure the west Texas and New Mexico region receives the level of service our customers have come to expect from Simons Petroleum.
In April 2004 the company announced its goal of becoming the largest oil jobber in the United States. SPI is close to meeting that goal, company spokesman Janet Schisser told Lube Report, and additional companies are targeted for acquisition. SPI, based in Oklahoma City, acquired Hartney Fuel Oil Co. of Chicago in January.