Dive Brief:
- Private equity firm Brenton Point Capital Partners has created a new business, Continental Fuel Group, that aims to buy commercial fuel distributors, Brenton announced on Tuesday.
- The newly created company “is actively pursuing acquisitions of established fuel distribution businesses in the bulk, on-site, mobile fueling, and wholesale delivery sectors” in the Midwest, Mid-Atlantic and Southeast, according to the announcement.
- Fuel-focused M&A has been heating up in the past few months, with multiple businesses leaving the industry entirely and selling their operations to competitors amid a difficult operating environment.
Dive Insight:
The pressures that are forcing some smaller convenience store operators to leave the business can also impact fueling companies — and Continental is looking to those firms as it builds its portfolio.
According to the release, Continental is focused on lower middle market companies — those with annual revenue generally in the $10 million to $150 million range — whose owners are looking to step back from the business or move on entirely.
The company says it plans to preserve the brands and teams of the entities it buys.
“I’ve spent 25 years running fuel businesses, growing them, and eventually selling them. I know what these businesses mean to their owners and their employees, and how deep their relationships with their customers are,” said Rob Lewis, CEO of Continental Fuel Group. “We’re not a financial buyer looking to strip costs. We’re operators looking to build solid businesses for the long term.”
Lewis brings extensive experience in the aviation and fuel industries. His past roles include vice president of sales and marketing for the Epic Fuel division of airline company Signature Aviation, CEO of Pentastar Aviation and president of Everest Fuel, according to his LinkedIn bio. Chairman Vincent Hartnett is a logistics and fleet services executive with extensive operational leadership experience, according to the announcement.
“Our backing and their operating experience gives owners a genuine alternative to the typical private equity transactions and is one where the business, the people, and the legacy are protected,” said Tim Hall, managing partner at Brenton Point Capital Partners.
Continental is stepping into the increasingly hot fuel M&A market. In the past few months, deals have included Gaubert Oil acquiring the wholesale and transportation division of Buffalo Services; Minuteman Food Mart’s parent company, Campbell Oil, buying North Carolina competitor Smith Oil; California distributor JB Dewar acquiring local competitor McCormix Corporation; and Sunoco LP buying the wholesale fuel division of Pops Mart, along with 36 of the company’s 54 convenience stores.
