Dive Brief:
- SC Fuels, Pilot Company’s fuel distribution arm on the West Coast, has acquired California-based competitor Downs Energy for an undisclosed amount, according to an announcement from Matrix Capital Markets, which coordinated the sale.
- The deal includes Downs’ six cardlock facilities, fleet card, and fuel and lubricants delivery businesses. Since its founding in 1940, Downs has serviced commercial and municipal customers in Southern California.
- This grows SC Fuels’ already expansive fuel distribution network, which previously included 11,000 customers across 15 western states, according to its website.
Dive Insight:
Downs’ sale to SC Fuels ends the company’s 85-year history as a family owned and operated business. In 1975, the then-wholesale distributor introduced a “key lock” system for 24-hour fuel sales at unattended sites, which developed into its cardlock facilities today, according to the announcement.
Downs joined the Commercial Fueling Network, which provides petroleum marketers with fuel card authorization, transaction processing, cardlock site branding and reciprocal site access, in 1989. After third-generation President Mike Downs assumed leadership in 1992, the company opened and acquired more cardlock facilities and focused on growing its fuel and lubricants delivery business.
It’s unclear why Downs and his team decided to sell the company after eight decades in business. His predecessor and father, John Downs, passed away earlier this summer, according to a company Facebook post.
“Over three generations, the Downs family has built one of the leading cardlock, fleet card and fuels and lubricants distribution businesses in the industry by focusing on continuous investment in their state-of-the-art cardlock facilities and best-in-class customer service,” said Cedric Fortemps, co-head of Matrix’s downstream energy and convenience retail investment banking group.
Pilot is leasing the cardlock facilities, according to the announcement. Pilot acquired SC Fuels back in 2021, and the two companies continue to operate their fuel distribution networks with minimal overlap, according to SC Fuels’ website.
