Atlas Oil Expands Midwest Storage and Delivery Capabilities with Buckeye Pipeline Strategic Alliance
22 December 2005 - 4:13AM
PR Newswire (US)
Michigan's Largest Independent Oil, Gas and Specialty Fuels
Distributor Accelerates Growth with Addition of Buckeye
'Throughput' Ability TAYLOR, Mich., Dec. 21 /PRNewswire/ -- Two of
the largest independent players in the Midwest distribution of
fuels are joining in a strategic relationship that accelerates the
growth of Atlas Oil's distribution structure. Taylor,
Michigan-based Atlas Oil Company has entered into a strategic
relationship with Emmaus, Pennsylvania-based Buckeye Partners that
increases Atlas's distribution capabilities through additional
capacity gained from the use of Buckeye's transmission and storage
facilities to move Atlas product, known in the industry as
"throughput." The announcement was made by Atlas Oil owner Sam
Simon. Atlas is a privately held company. Buckeye is publicly
traded on the NYSE under the symbol BPL. "The utilization of the
Buckeye transmission and storage facilities will continue the
acceleration of our growth in the Midwest," Simon said. "Atlas is
known for our 24-7-365 devotion to customer service. This added
capability keeps making us stronger in that drive to provide
superior service." "We are pleased to have acquired the Atlas
terminal located in Taylor, Michigan," said William H. Shea, Jr.,
president and chief executive officer of Buckeye Partners. "We look
forward to serving Atlas' throughput requirements at the Taylor,
Michigan terminal and at other Buckeye terminals in the Midwest. We
are pleased to be associated with the Atlas team and look forward
to building upon our strong relationship in the years ahead." Atlas
Oil, with nearly $700 million in revenue distributing more than 475
million gallons of fuel annually, is one of the largest independent
distributors of gasoline, diesel and specialty fuels in the Midwest
ranging from bulk sales and "over-night" fleet fueling to retail
service stations and related services. Atlas Oil and its related
companies combined also own, lease, operate or supply more than 250
retail service stations in Michigan, Indiana and Ohio. Buckeye
Partners, L.P., through its operating subsidiaries, is one of the
largest independent refined petroleum products pipeline systems in
the United States in volume delivered, with approximately 4,900
miles of pipeline. The Partnership also owns and operates 42
refined petroleum products terminals with an aggregate storage
capacity of approximately 16.7 million barrels in Michigan,
Indiana, Ohio, Illinois, and other Midwestern and Eastern states,
and operates and maintains another 1,300 miles of pipeline under
agreements with major oil and chemical companies. Buckeye's
operating subsidiary Buckeye Terminals LLC has acquired the Taylor,
Mich. terminal from affiliates of Atlas Oil Terminals Operations,
Inc. Atlas will lease back certain office facilities at the
terminal from Buckeye. Buckeye intends to operate the terminal in a
manner substantially similar to Atlas's past operation. The Taylor
terminal facility has 12 million gallons in storage space.
Financial terms of the transaction were not released. The Buckeye
strategic partnership builds on the earlier 2005 Atlas acquisition
of Fisher Fuels, a Walled Lake, Michigan-based distributor of
diesel and heating fuels which added $25 million revenues to Atlas.
Atlas previously acquired B&R Oil Company of South Bend,
Indiana in October 2002, with current annual sales of $180 million.
B&R owns and rents out 21 retail gas stations and distributes
more than 105 million gallons of fuel to 61 Phillips 66 and 22
Citgo retail stations. Atlas Oil's Web site is
http://www.atlasoil.com/. Buckeye's Web site is
http://www.buckeye.com/. CO: Atlas Oil Company; Buckeye Partners,
L.P. ST: Michigan, Pennsylvania IN: OIL SU: JVN DATASOURCE: Atlas
Oil Company CONTACT: Leland K. Bassett or Jennifer M. Baum,
+1-313-965-3010, both of Bassett & Bassett, Incorporated for
Atlas Oil Company Web Site: http://www.atlasoil.com/
http://www.buckeye.com/
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