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Offen Petroleum Acquires Gas Depot Wholesale Division

Greg Lindenberg

Jan 4, 2023

Distributor adds 150 new retail customers, enters the Great Lakes region

Offen Petroleum has completed the acquisition of the wholesale division of Gas Depot Inc. and Gas Depot Oil Co., representing its entry into the Chicago market and the Great Lakes region.

This acquisition will add more than 150 new retail gas station and convenience-store customers along with a portfolio of municipal customers. Commerce, Colorado-based Offen Petroleum is an independent distributor of motor fuels, propane and lubricants and offers petroleum logistics services nationwide. The company is establishing an operations center in Chicago and is hiring the operations personnel of Gas Depot.

George Nediyakalayil founded Gas Depot in 1999. It is a full-service wholesale distributor of motor fuels in 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 being a supplier of unbranded motor fuels. Gas Depot operates its own chain of gas stations, and after the transaction, Gas Depot will continue to operate these stores. “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.”

Nediyakalayil, CEO of Chicago-based Gas Depot, said, “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 towards 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. 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.”

Downstream Energy Partners and Trilla Consulting Group provided exclusive merger-and-acquisition advisory services to Gas Depot. DEP is an M&A advisory firm providing services to middle-market companies within the downstream energy sector and is comprised of professionals who have experience as both owner/operators and strategic financial advisors to energy companies.

“Offen Petroleum is acquiring high-quality wholesale fuel supply assets in a location strategic to their expanding footprint,” said Jeff Traub, partner of DEP, adding, “George Nediyakalayil built an exceptional company.” In addition to organic growth, Offen Petroleum is an active acquirer of companies in this consolidating marketplace. Offen distributes more than 2.4 billion gallons of motor fuel annually and will serve customers throughout the United States. In addition to branded and unbranded motor fuels, the company sells propane and lubricant products and solutions for the commercial, industrial and passenger car segments, as well as diesel exhaust fluids (DEF). Offen is a portfolio company of Court Square Capital Partners, a New York City-based private equity firm with $7 billion of assets under management.

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