DENVER—Offen Petroleum has acquired the wholesale division of Gas Depot Inc. and Gas Depot Oil Company, both headquartered in Chicago. The acquisition marks Offen’s first entrance into Chicagoland and the Great Lakes region.
Gas Depot was founded by George Nediyakalayil in 1999 and is a full-service wholesale distributor of motor fuels throughout the Midwest, including Illinois, Wisconsin, Indiana and Missouri. Gas Depot sells motor fuels under the Shell, Marathon, Citgo, BP, Exxon/Mobil, Gulf, Clark and its proprietary Gas Depot brands, as well as supplies unbranded motor fuels. Gas Depot operates its own chain of gas stations and will continue to operate these stores following the transaction.
“I am very pleased that we have been able to impact the fuel industry over the past 23 years, and now our team has chosen to redirect our efforts toward growing our other companies and businesses. Gas Depot has grown not just as a business, but an extended family that has created lifelong opportunities and relationships,” said George Nediyakalayil, founder and CEO of Gas Depot. “While it is not easy to transition off this business, I know that Offen will be an excellent operator to continue the growth that we started.”
The acquisition will add over 150 new retail gas station/convenience stores along with a portfolio of municipal customers. The addition of these customers will provide Colorad-based Offen a new footprint in Chicagoland and surrounding markets.
Offen also is establishing an operations center in Chicago and will be hiring the operations personnel of Gas Depot, the company said.
Offen said the deal builds on its status as one of the leading fuel distributors in the United States and grows the company’s commitment to supporting the branded motor fuel dealer and municipal businesses.
“George Nediyakalayil and his team of dedicated employees have created a very successful business operating in a highly competitive marketplace, and I am very honored that the Nediyakalayil family has entrusted Offen to continue providing superior service to their customers,” said Bill Gallagher, Offen’s CEO. “This is a unique opportunity for us to acquire a high-quality portfolio of customers in one of America’s largest markets.”
Downstream Energy Partners and Trilla Consulting Group provided merger and acquisition advisory services to Gas Depot.
“Offen Petroleum is acquiring high quality wholesale fuel supply assets in a location strategic to their expanding footprint,” said Jeff Traub, partner of DEP. “George Nediyakalayil built an exceptional company, and it’s been an absolute pleasure representing them in this transaction.”