Renewable Energy grows downstream footprint with acquisition
Renewable Energy Group, Inc. has acquired Amber Resources, LLC (dba Sawyer Petroleum), a leading Southern California full-service distributor of diesel, gasoline, lubricants, other transportation fuel components, industrial services and additives. Amber Resources will add more than 60 million gallons per year of diesel sales to the company’s portfolio and a significant lubricants business as a Shell® Prestige distributor.
The acquisition, which includes Amber’s affiliated entities, M.O. Dion & Sons and Amber Petroleum Products, builds upon Renewable Energy Group’s downstream participation, growing the company’s footprint in one of the most renewables-focused regions in the world.
The deal is expected to be immediately accretive to earnings and in line with the Renewable Energy Group’s targeted internal rate of return.
“This deal is a strategic move for REG that enables us to build upon our platform of direct sales, positioning us to capture full value chain margins and drive commercial optimization, while helping our customers achieve their decarbonization goals,” said Cynthia (CJ) Warner, REG president and chief executive officer.
“REG provides clean fuels that reduce carbon now, and adding the Amber Resources products and services line to our network expands our low carbon fuel sales opportunities in California.”
With this deal, REG adds eight locations in Southern California, including distribution centers and three cardlock sites. REG will continue business operations from these locations, providing customers with uninterrupted services and an enhanced clean fuel product offering. Amber Resources is a family of companies that has a deep history in Southern California and is known for its top quality products and customer service.
“Amber Resources has a long history of delivering an outstanding customer experience in Southern California,” said previous owner, Matt Cullen. “Joining with Renewable Energy Group is a natural next step for our business as customers look for renewable solutions.”
This announcement adds to recent news regarding REG’s growing downstream business. Most notably, REG has received commitments to supply biofuels for both rail and marine operations. In addition, REG recently announced a partnership with Booster Fuels, a tech-enabled mobile fueling company.
“This acquisition is the next big step in our full value chain strategy, and we are thrilled about the future and the opportunity to expand our downstream offerings,” said REG Senior Vice President, Sales and Marketing Bob Kenyon. “Combining Amber Resources’ talented professionals, best in class customer service and expansive product line with REG’s clean fuels expertise enables REG to become our customer’s clean energy transition partner of choice.”