In the United States (US), Renewable Energy Group, Inc., (REG) has announced that it has acquired Amber Resources, LLC (dba Sawyer Petroleum) and its affiliated entities, M.O. Dion & Sons and Amber Petroleum Products. Amber Resources is a leading Southern California full-service distributor of diesel, gasoline, lubricants, other transportation fuel components, industrial services, and additives.
According to a statement, this acquisition builds upon REG’s downstream participation, growing the company’s footprint in one of the most renewables-focused regions in the world.
Amber Resources will add over 60 million (US) gallons (≈ 227.1 million litres) per year of diesel sales to the company’s portfolio and a significant lubricants business as a Shell Prestige distributor.
The deal, the value of which has not been disclosed, is expected to be immediately accretive to earnings and in line with the Company’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. 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, said Cynthia (CJ) Warner, President, and CEO, REG.
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. Joining with Renewable Energy Group is a natural next step for our business as customers look for renewable solutions, said previous owner, Matt Cullen.
The 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. 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, said Bob Kenyon, SVP Sales, and Marketing, REG.
