The acquisition is expected to close later this month and Center Oil will subsequently operate as a new business unit of BioUrja.
Center Oil was founded in 1986 by Gary Parker and is among the nation’s leading wholesale suppliers of gasoline, diesel and ethanol. Headquartered in St. Louis, Missouri, the company is one of the largest privately held energy companies in the Mid-West, with annual revenues averaging above $3 Billion.
BioUrja, on the other hand, was founded in 2006 by Amit Bhandari and is a leading energy commodity trading and supply company, focusing on ethanol, electric power, crude oil, and natural gas. BioUrja’s headquarters are in Houston, Texas, which will become the headquarters for Center Oil subsequent to the acquisition, though the primary business operations of Center Oil will remain in St. Louis. BioUrja is among the largest privately held energy companies in the Houston area, with annual revenues also averaging above $3 Billion.
Amit Bhandari, Chairman and CEO of BioUrja, stated that: “With the acquisition of Center Oil, we will substantially expand our commodity trading and supply platform by adding refined products like gasoline and diesel, while also expanding our already strong ethanol business. The acquisition will diversify our geographic footprint and deepen our customer base. We are very excited to have Center Oil as part of our family. This is a transformational deal for us and we are ready to move up to the next weight class in the energy sector.”
Rob Kraeger, President of Center Oil, said “I have known BioUrja for more than a decade and have always found them to be a great business partner. Now that they will become owners, we are taking our relationship to another level and everyone on our team is excited about what we can accomplish together. We are proud to be part of BioUrja going forward.”
As part of the transaction, the shareholders of GP&W Inc will acquire a minority stake in BioUrja so that they can continue participating in the combined business. Adam Parker, a Director of GP&W Inc and son of Gary Parker, will represent the minority shareholders going forward. Rob Kraeger will remain President of the Center Oil business unit of BioUrja, while BioUrja’s management team will be unchanged.
Source: Company Press Release
