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Merger Announcement

June 14, 2006  Lube Report
 
ExxonMobil Jobbers Announce Merger 
By Tim Sullivan
 
Four ExxonMobil distributors spanning the Midwest and Southeast announced last week that they have merged to become one of the largest lubricant distributors in the United States. Officials with newly formed PetroLiance LLC said the union is part of an industry trend toward consolidation and that the merged company should be able to better serve customers.
 
“Given the scale of this consolidation and the resources driving it, we believe this is a breakthrough alliance,” said Chief Executive Officer Kevin McCarter, who comes to PetroLiance with Boncosky Oil Co., of Elgin, Ill. “It is a strong signal of an emerging industry trend that will continue to build real momentum.”
 
The other companies involved in the deal are Cleveland-based Commercial Ullman Lubricants Co.; Lubricant Technologies LLC, which is based in Cary, N.C.; and Young Oil Company, of Pompano Beach, Fla. Together they claim annual sales revenues of nearly than $300 million. Commercial Ullman distributes heavy-duty lubricants and metalworking fluids throughout Ohio and western Pennsylvania. Lubricant Technologies offers automotive, commercial and marine lubes, as well as commercial fuels and distillates in the Carolinas, eastern Georgia and northern Florida.
 
Young delivers automotive, commercial and industrial lubricants in south Florida and the Caribbean. Boncosky distributes automotive and commercial lubes, fuels, distillates and related products in northern Illinois and surrounding areas.
 
According to Michael Solitt, PetoLiance acquisitions manager, the number of independent companies distributing petroleum products in the United States has shrunk by two thirds since the late 1960s, while the average sales volume of each distributor increased five-fold.
 
Officials said the scale of the new company will allow it to devote more resources to customer service, using methods such as focus groups to help identify needs. They said PetroLiance also intends to expand by acquiring additional distributorships.
 
Along with ExxonMobil products, PetroLiance will market lubricants under Boncosky’s Medallion Plus brand.