Pilot Flying J Acquires Maxum Petroleum

Pilot Flying J has completed its previously announced acquisition of a controlling interest in Maxum Petroleum. Current investors, including Waud Capital Partners, Metalmark Capital and Maxum management received cash proceeds from the transaction and made a meaningful re-investment in the new venture.


Pilot Flying J, Waud Capital Partners (“WCP”), Metalmark Capital (“Metalmark”) and Maxum Petroleum (“Maxum”) today announced that Pilot Flying J completed its previously announced acquisition of a controlling interest in Maxum for cash and Pilot Flying J’s contribution of Western Petroleum into Maxum. Current investors, including WCP, Metalmark and Maxum management, received cash proceeds in the transaction and made a meaningful re-investment in the new venture.

Maxum is one of the largest independent energy logistics companies in North America, selling and distributing over 1.3 billion gallons of refined petroleum products and serving over 15,000 customers. Maxum’s services include a comprehensive offering of fuel and lubricants as well as a wide array of value-added logistics and energy management services to a diverse industrial customer base. Maxum is well positioned to continue to grow by capitalizing on its procurement and logistics expertise, strong refiner relationships, broad distribution platform, enterprise-wide information technology systems, suite of complementary and value-added services and experienced management team. Maxum will continue to operate as an independent stand-alone business under the leadership of CEO Perot Bissell.

“The management team of Maxum Petroleum is very pleased to have Pilot Flying J as a partner,” said Perot Bissell, Maxum’s CEO. “Pilot Flying J’s investment in our business is a strong validation of the strategy and vision we have been pursuing since 2004. We will continue to provide our customers with high quality and reliable delivery with a strong focus on value added services and solving our customers’ unique logistics requirements. We are also delighted to welcome the Western Petroleum team to Maxum. The addition of Western Petroleum’s people and network of logistics assets will be a strong addition to our distribution platform. The completion of this transformational transaction reflects the hard work of the Maxum team and the unwavering support we have received from our equity sponsors, including WCP and Metalmark.”

“As one of the founding investors in Maxum in 2004, I have had the pleasure of partnering with Perot and his team, and Metalmark since 2009, to build one of the market leaders in the energy logistics industry. This transaction represents an important milestone for Maxum and we are excited about the future opportunities to create value for our customers, employees and shareholders,” said Reeve Waud, Chairman of Maxum and Founding Partner of WCP. He added, “The partnership with Pilot Flying J and Jimmy Haslam, its President and CEO, is an exciting aspect of this transaction and positions Maxum uniquely to capitalize on significant opportunities in its highly fragmented market.”

Pilot Flying J was advised by Stifel Nicolaus Weisel and White & Case LLP. Maxum was advised by JP Morgan, BofA Merrill Lynch and Kirkland & Ellis LLP. WCP was advised by Winston & Strawn LLP.

About Pilot Flying J

Pilot Flying J is headquartered in Knoxville, Tennessee, and has more than 600 retail locations across North America. Pilot Flying J is also one of the nation’s largest wholesale fuel providers, delivering over 8 billion gallons of fuel annually to thousands of customers in 47 states and eight Canadian provinces. The company employs approximately 21,000 people and is the largest operator of travel centers and travel plazas in North America. For more information, please visit www.pilotflyingj.com.

About Maxum Petroleum

Maxum Petroleum, Inc., based in Greenwich, CT, is a leading independent energy logistics company that markets and distributes a comprehensive offering of refined petroleum products and services to commercial and industrial customers in the United States and Panama. Launched in 2004, Maxum Petroleum is continuing a strategic growth and acquisition plan in the fragmented commercial fuel and lubricant distribution industry, and has completed 16 acquisitions to date. For more information, please visit www.maxumpetroleum.com.

About Waud Capital Partners

Waud Capital Partners is a leading private equity firm founded in 1993 that has partnered with dozens of exceptional management teams and has acquired more than 120 businesses. The firm seeks to invest $20 million to $100 million in private companies in the following four areas: healthcare services, business, consumer and government services, specialty distribution and value-added industrial. The firm has approximately $1 billion of capital under management.

About Metalmark Capital

Metalmark Capital is a leading private equity firm whose principals have a long track record of successful investing in targeted sectors, with particular focus and competence in energy and natural resources, industrials and healthcare. Metalmark Capital seeks to build long-term value through active and supportive partnerships with the companies and management teams in which it invests. Metalmark Capital, which is an investment center of Citi Capital Advisers, is currently investing its latest fund with $2.5 billion of committed capital.