Maxum Acquires New Mexico, Panama Facilities


Maxum Petroleum Inc., wholly-owned subsidiary of SPI Petroleum LLC, has acquired lubricant and fuel distributor Farmington Oil Co. in New Mexico and a lubricant blending plant from Esso Standard Oil of Panama. Terms of the deals were not disclosed.

Through one of its operating subsidiaries, Simons Petroleum, Maxum took over assets and operations of Farmington Oil Co., a lubricant and fuel distributor in Farmington, N.M. It serves industrial and commercial markets in four states – Arizona, Colorado, New Mexico and Utah. According to Mike McDonald, Maxum Petroleums senior vice president for mergers and acquisitions, the company has distributed in the region but never maintained a facility there.

Formerly owned by Esso Standard Oil of Panama (part of ExxonMobil), the blending plant in Balboa, Panama,willexpandthe companys existing customer base of deep draft marine vessels in the Panama Canal. It also serves as a launching point to serve the greater Central America lubricant market, the company said. Maxum already maintains a lubricants and fuels distribution center in Panama through its subsidiary, General Petroleum, which acquired the Panamanian blending facility.

Both of those facilities complement our existing operations, McDonald told Lube Report. Simons focuses on oil and gas exploration, and were seeing increased drilling activity in New Mexico. [So with Farmington] we will be able to better serve our customers there. [And] we see great potential and opportunity with the construction and growth of the Panama Canal.

Old Greenwich, Conn.-based Maxum Petroleum markets and distributes refined petroleum products and services to commercial and industrial customers. It is a wholly-owned subsidiary of SPI Petroleum LLC, an acquisition vehicle formed in 2004 by three private equity firms, Northwest Capital Appreciation Inc., Waud Capital LLC and RBC Capital Partners (though Cadent Energy Partners) with the goal of consolidating the commercial lubricant and fuel distribution industry.

Including Farmington Oil and the Panama plant, Maxum has completed 10 acquisitions of lubricant and fuel marketers and facilities to date, including Simons Petroleum, Trevco, Hartney, Pecos (including its General Petroleum and Rainier Petroleum subsidiaries), Canyon State Oil and Petroleum Products.

According to McDonald, all management and employees at the New Mexico and Panama facilities will join Maxums subsidiaries, Simons Petroleum and General Petroleum.

Maxum continues to execute our strategy of identifying, executing and integrating strategic acquisitions, said Bissell.

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