Midland, Texas-based United Fuel and Energy Corp. on Dec. 19 announced that it has entered into a definitive agreement to acquire Ackerly Oil Co. Inc., based in Big Spring, Texas, which will give United Fuel a bulk plantfor lubricants as well as other productsnear one of its suppliers. Specifics of the all-cash transaction,expected to close at the end of this week, were not disclosed.
Founded in 1976, Ackerly Oil has distributed gasoline, diesel, propane and lubricants to customers in west Texas through its bulk plants in Big Spring and Lamesa and operates some card lock facilities. Ackerly Oil operates under the trade name Trio Fuel, and provides services to the agricultural, commercial and oilfield services industries, as well as to domestic propane customers. The assets United Fuel will purchase consist of the Big Spring bulk plant, tanks, inventory and truck fleet.
Chuck McArthur, United Fuel and Energy’s president and chief executive officer, said, “We are pleased to be extending our footprint in the Big Spring area and will benefit from having a bulk plant that is strategically located near one of our suppliers. This acquisition will also position us to better support our customers operating in the area, as well as develop a relationship with Ackerly Oil’s long-time customer base.”
United Fuel distributes lubricant, gasoline, diesel and propane products primarily in certain rural markets of Texas, New Mexico and Oklahoma. Its activities include wholesale fuels and lubricants to commercial customers.
United Fuel represents the consolidation of four companies, including the Eddins-Walcher Co. Eddins-Walcher has been in business since 1937 and represents the majority of United Fuel’s consolidated revenues. United Fuel, which has 275 full-time employees, said it intends to continue to expand its business through strategic acquisitions.