Lariat Sells Offen Petroleum to Court Square

Lariat Partners has sold Offen Petroleum, one of the largest fuel distributors in the Western US, to Court Square Capital Partners.

Offen Petroleum is a provider of fuel, lubricants, and logistics services in Colorado and the Rocky Mountain region. The company distributes over 1 billion gallons of motor fuel annually and serves as both a branded and unbranded wholesale motor fuel distributor in 14 Rocky Mountain West states.  In addition to motor fuels, Offen also sells lubricant products used in the commercial, industrial, and passenger car segments, as well as diesel exhaust fluids used in emission controls. The company is headquartered near Denver in Commerce City, CO (www.offenpetro.com).

Lariat first invested in Offen in December 2017. During the term of its ownership, the company doubled the number of gallons distributed annually and significantly grew its earnings. Lariat completed two add-on acquisitions for Offen with the buys of Overland Petroleum, a St. George, UT-based fuel distributor, in September 2018; and Allied Energy, a Phoenix, AZ-based fuel distributor, in May 2019.

“Our partnership with Lariat was outstanding and extremely beneficial for our company,” said Bill Gallagher, founder and chief executive officer of Offen. “Together, we have continued to strengthen Offen in order to accelerate our organic growth while simultaneously executing strategic acquisitions across our core geographies.  We are evaluating a robust pipeline of strategic add-on opportunities and our larger scale has further opened the doors to new organic growth prospects. I appreciated my relationship with Lariat, and I look forward to working with the Court Square team as we build upon Offen’s already strong performance.”

“When we invested in Offen, we not only invested in the company but in Bill and his entire management team. It was a strong company with long-standing customer relationships, and we knew it had tremendous future potential.  Working together we were able to unleash that potential and with additional investment it will continue to expand its geographic reach and serve its customers extremely well,” said Jay Coughlon, a managing partner and co-founder of Lariat Partners and who lead the Offen transaction.

Lariat invests in lower middle market companies that have EBITDA of $2 million to $20 million. The firm targets companies across several industries including consumer products, energy and environmental services, food and agribusiness, healthcare services, marine services, safety products and services, and specialty distribution. The firm was founded in January 2013 and is based in Denver (www.lariatpartners.net).

Court Square, the buyer of Offen, invests in middle market companies that have enterprise values of $150 million to $1.5 billion. Sectors of interest include business services, general industrials, healthcare, and technology/telecommunications. The firm is based in New York (www.courtsquare.com).

Stephens Inc. was the financial advisor to Offen Petroleum. KeyBanc Capital Markets served as lead arranger on the financing to support the transaction.

© 2019 Private Equity Professional | June 28, 2019

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