MCW Energy acquires Ocean Pacific's Valero contractsAudio version
The agreement includes the assignment of Ocean Pacific's four Valero-branded reseller distribution agreements to MCW Fuels, which involves attaining the distribution rights to four Valero stations, all of which are located in California's Central Valley region. The Valley's population base is 6.5 million people and includes the cities of Fresno, Stockton, Bakersfield and the state capital, Sacramento.
"MCW Fuels' acquisition of Ocean Pacific's branded reseller distribution agreements is another step forward for the company's aggressive acquisition program of regional fuel distributors," said David Sutton, CEO of MCW Fuels. "We're adding four key locations in the state's fastest growing region to our growing distribution network." The company's management team said it expects that this acquisition will add approximately five million gallons of fuel distribution to MCW Fuel's annual sales volumes.
On June 13, 2012, MCW Energy Group announced the acquisition of Westco Petroleum Distributors Inc., another California-based fuel distributor.
A division of MCW Energy Group, this operation markets more than 145 million gallons of branded and unbranded fuels annually throughout Southern California, with annual sales expected to grow to more than $ 300 million in 2012, according to the company. It now supplies fuel to more than 225 branded and unbranded service stations, and provides commercial fuels to more than 100 businesses.
MCW Fuels retains regional branding rights to major premier brands such as 76, Valero and Alliance, and it offers signage assistance and accounting systems. MCW Fuels also provides several value-added services including credit-card processing, inventory control systems and price management services, and it is involved in the marketing of alternative fuels such as hydrogen. Through a program of mergers and acquisitions such as Ocean Pacific and Westco, the company is planning to expand into other regional U.S. markets.