SAN ANTONIO--(BUSINESS WIRE)--Meritum Energy Holdings, LP (“Meritum”) announced today that it has completed the acquisition of Pico Petroleum, a propane and fuel distribution business in south Texas. In addition to the announcement of the acquisition, Meritum announces completion of the equity raise and closing of the limited partnership that was created to acquire, own and operate propane, NGL and fuel distribution related assets and operations throughout the southern United States. Meritum has also closed on a credit facility led by Bank SNB’s San Antonio commercial team, which includes The Bank of San Antonio as a participant bank. The credit facility is structured to allow for the initial Pico Petroleum acquisition and also provides for significant additional capacity for future growth.
Pico Petroleum has a broad operating footprint in south Texas and a diverse customer mix throughout the area distributing propane, gas, diesel, oils and lubricants. “Pico Petroleum is an outstanding platform for us to build from,” explains President and CEO Chris Hill. “They have a great group of employees and have developed an excellent reputation for delivering the highest level of service and safety to their customers and we look forward to building upon that.”
Meritum will continue with the “Pico” brand and will operate under the name Pico Propane and Fuels. As Meritum looks to grow its operations, it will expand Pico Propane and Fuels into new markets and broaden its service offerings in the propane and fuel distribution business. “We look forward to drawing from our experience and relationships in the industry to expand upon what Pico currently offers,” says Rob Chalmers, CFO and EVP of Business Development for Meritum. “Building a business development and sales team to support and grow the already quality operations of Pico is an exciting proposition for us.”
In addition, Meritum has closed on its initial equity raise and credit facility which provides significant capital for future growth. “As we continue to grow the company through acquisitions and organic sales efforts, knowing that we have the capital to execute on that growth is critical,” says Hill. “Our equity and banking partners are aligned with our long term vision and committed to providing the capital to execute it.”
About Meritum Energy Holdings, LP
Meritum, based in San Antonio, Texas, was formed in 2015 by Christopher Hill and Robert Chalmers, executives with substantial experience and expertise in the propane, fuel distribution and natural gas liquids (NGL) industry. Meritum was founded to acquire, own and operate propane, fuel distribution and NGL-related assets and operations throughout the United States. Drawing on both their industry experience and innovative ideas, Meritum Energy Holdings’ mission is to provide outstanding value, service and support to their full spectrum of customers and employees.
About Pico Petroleum
Pico Petroleum is a wholly owned subsidiary of Westex Capital Ltd., a Del Rio, Texas based company. Pico has distributed propane, gas, diesel, oils and lubricants in south Texas for the past 29 years. Pico has bulk plants in Boerne, Carrizo Springs, Uvalde, Del Rio, Pearsall, Floresville and Kenedy, Texas which allows it to service customers in over 35 counties in south Texas.