Bosselman Energy and Bosselman Carrier of Grand Island and Offen Petroleum announced Wednesday that they have “mutually agreed to end their agreement pursuant to which Offen would have acquired Bosselman.”
Both companies announced the pending deal March 11 and it was set to close in April, but their Wednesday announcement said that the coronavirus pandemic has had a “significant impact on the transaction.”
According to Fred Bosselman, president of Bosselman Energy, both his company and Offen have had to “redirect their focus into coping with the pandemic.
“Due to the COVID-19 pandemic we have run into several challenges in completing due diligence and have decided to redirect our focus to our team, our customers and the communities we do business in,” Bosselman said.
When announcing the acquisition in March, both companies agreed that it would result in long-term strategic benefits.
“While we are disappointed that we cannot move forward at this time, ending the transaction is the appropriate action considering the impact of the pandemic,” said Bill Gallagher, CEO of Offen.
At the time the acquisition was announced, Offen Petroleum said the acquisition of Bosselman Energy and Bosselman Carriers would further expand its business into the Midwest. If it had proceeded, the business would have operated as Offen Petroleum and the Bosselman Grand Island office would have been the regional operations center. Its bulk plants would have remained open and operated as Offen Petroleum.
In a joint statement Wednesday, the companies said they are “incredibly grateful to our employees, suppliers and customers and are dedicated to carrying out our missions throughout this health and economic crisis.”
Offen Petroleum is headquartered in Commerce City, Colo., and is a distributor of fuels and lubricants. It distributes more than 1 billion gallons of motor fuel annually and serves as both a branded and unbranded wholesale motor fuels distributor in 14 states. In addition to motor fuels, it also sells lubricant products and solutions for the commercial, industrial and passenger car segments, as well as diesel exhaust fluids used in emission controls.
Bosselman Energy and Carriers are part of a diverse portfolio of companies owned by Fred Bosselman, with headquarters in Grand Island. The companies have an over 70-year history in the petroleum industry and currently operate throughout the Midwest.
The origin of the company goes back to Fred Bosselman Sr. and his family when they opened Bosselman & Eaton Truck Stop on U.S. Highway 30 in Grand Island in 1948. The company grew and expanded into many new ventures, including convenience stores, truck plazas, fuel and propane services, transportation services, restaurants, truck repair shops and lodging.
The company split into two entities in 2011 to handle its rapid growth and diversity of divisions. Bosselman Energy Companies is focused on wholesale sales and transportation.
The company has marketed and delivered petroleum products throughout the Midwest for more than 60 years. It offers bulk fuel, propane and major brands of lubricants to commercial, residential and agriculture customers. Along with its headquarters in Grand Island, the company has eight bulk storage facilities throughout Nebraska and Kansas.
In addition to marketing petroleum products, the Bosselman Energy umbrella includes Bosselman Carriers, a trucking company that transports petroleum products, and Bosselman Tank and Trailer, which focuses on building new and refurbishing used fuel, farm and LP bobtail delivery units along with repairing and testing customer vehicles and trailers.