Pompano Beach, FL (PRWEB) June 8, 2006
Four of the nation’s largest ExxonMobil distributors have announced plans to consolidate operations and form a new company, PetroLiance LLC. The four companies are Boncosky Oil Company of Chicago; Commercial Ullman Lubricants Company of Ohio; Lubricant Technologies LLC, which is active in North and South Carolina, and Georgia; and Young Oil Company of South Florida.
By combining the resources of the four companies, PetroLiance will be, by far, the largest ExxonMobil distributorship in each of the markets in which it operates, said Kevin McCarter, speaking on behalf of the new organization. McCarter will serve as chief executive officer.
“Given the scale of this consolidation, and the resources driving it, we believe this is a breakthrough alliance. It is a strong signal of an emerging industry trend that will continue to build real momentum,” said McCarter. “This new partnership is united by a vision of enhanced customer service, innovative business strategies and robust growth.”
He also noted the new company would have annual sales of nearly $300 million, which means the new company will immediately be a major force in the industry.
“These four founding companies will form four rock solid anchor positions,” explained Michael Solitt, who will be PetroLiance’s acquisitions manager. “From here, we plan to build bridges to other parts of the national distribution system over the next few years, and will be inviting other quality companies to join us as our alliance grows.”
Solitt added that PetroLiance plans to play a leading role in shaping the continuing consolidation of the petroleum industry. He pointed out that since the late 1960s, the number of individual companies distributing petroleum products in the United States has shrunk by two-thirds, while the average sales volume of each distributor increased five-fold.
“Clearly, the consolidation trend will be continuing, so our companies agreed to form PetroLiance in an effort to help shape this trend in a way that is beneficial for everyone concerned,” he said. “Our vision was not to consolidate for the sake of getting bigger. Our vision was to consolidate to get even better – better for our customers, our suppliers and our employees.”
Scott Lane, who will serve as chief marketing and technology officer of PetroLiance, noted that all four founding companies had won numerous awards from ExxonMobil for superior customer service and growth over the years, including the coveted Circle of Excellence Award. That emphasis will drive the new organization as well, he said.
“For most of its history, our industry has been fundamentally product-driven,” he explained. “We had a product to sell, and our job was to find customers who could use that product, sell it to them, and then deliver it.
“At PetroLiance we intend to turn that model around. We will use our combined marketing expertise to determine what our customers really need in terms of both products and services, and then find a way to develop and deliver those in the most cost-effective manner. We plan to invest significantly in customer research – finding out exactly what our customers expect.
“This is a fundamentally different way of thinking, and will help make PetroLiance a genuine catalyst for change in our industry,” he added.
PetroLiance will continue to offer ExxonMobil products exclusive of any other supplier brand. In addition, the company will also offer high-quality lubricants under the Medallion Plus® brand, along with a growing array of ancillary product and services.
“The launch of PetroLiance means our customers will now have a strategic partner that is committed to providing the products and services they need to minimize their total cost of ownership while improving their own performance and productivity,” said Lane. “We will be able to combine the service and attention of a local company, with the strength and depth of resources only a national company can provide.”
He said the company plans to devote considerable attention to further developing and deploying new technologies, such as remote telemetry, automated scheduling, electronic invoicing, Web-based marketing and other applications.
“Each of our individual companies had worked hard in these areas,” he said. “ But as PetroLiance, we’ll be able to leverage our resources and leap forward even more dramatically.”
Headquartered in Elgin, Ill., Boncosky Oil Company distributes industrial petroleum products, automotive and commercial lubricants, fuels, distillates, and other related products throughout Northern Illinois and surrounding areas. Commercial Ullman Lubricants Company, headquartered in Cleveland, serves customers throughout Ohio and western Pennsylvania, offering heavy-duty lubricants and a full line of metalworking fluids such as coolants, cleaners, drawing compounds and rust inhibitors. Lubricant Technologies LLC, based in Cary, N.C., distributes industrial petroleum products, automotive and commercial lubricants, marine lubricants, commercial fuels, distillates and other related products throughout North Carolina, South Carolina, eastern Georgia and Northern Florida. Young Oil Company, headquartered in Pompano Beach, Fla., serves automotive, commercial and industrial customers throughout South Florida and the Caribbean.