First Reserve Partners with Palmdale Oil

Florida-based Downstream Logistics and Distribution Platform to Pursue a Buy-and-Build Strategy

STAMFORD, Conn. and HOUSTON and FORT PIERCE, Fla., May 4, 2023 /PRNewswire/ -- First Reserve, a leading global private equity investment firm exclusively focused on investing across diversified energy, infrastructure, and general industrial end-markets, today announced it has partnered with Palmdale Oil ("Palmdale" or the "Company"), a leading provider of fuels, lubricants, and chemicals with delivery solutions across the state of Florida.

First Reserve invested in the Company and committed additional equity capital to support the acceleration of Palmdale's growth strategy in partnership with the Cheatham family, including Lachlan Cheatham (CEO), Kendall Cheatham (Vice President) and Mallory Cheatham Doremus (Sales and Marketing). The family has retained a significant stake in the business and will continue to lead the Company.

Founded by William Cheatham in 1984, Palmdale currently operates in more than 50 counties across Florida and provides a wide range of tailored commercial fuel and lubricant solutions to customers in the agricultural, industrial, construction, marine, and government sectors. Headquartered in Fort Pierce, Florida, Palmdale operates from 15 locations statewide and maintains a fleet of over 200 specialized vehicles including tankwagons, tractors, trailers, and box trucks. Palmdale's product suite includes traditional gasoline, diesel, biodiesel, commercial and industrial lubricants, and chemicals that are used across a diverse set of end markets. Lachlan Cheatham has led the business since 2002. Under his leadership team, Palmdale has grown volumes by approximately 500% through a combination of organic growth and 14 acquisitions.

First Reserve intends to leverage its significant industry experience and relationships across the downstream logistics and distribution sector to accelerate Palmdale's growth strategy, including through accretive acquisitions and organic growth initiatives that will support the expansion of the Company's product and service offerings and further enhance technological capabilities, as well as penetrate new markets in Florida.

Neil Wizel and Paul Steen, Managing Directors at First Reserve, said, "Over nearly 40 years, Palmdale has built an exceptional reputation based on reliability, a tailored offering, and an unwavering commitment to customer service. As the Company continues to expand its presence and grow its loyal customer base in the attractive and growing Florida market, we are excited to partner with the team to support the business in its next phase growth."

"This partnership with First Reserve provides us with additional financial resources and expertise to execute on our long-term vision for growth and innovation that will benefit all of our customers," said Lachlan Cheatham. "We believe there are a number of actionable opportunities to thoughtfully expand our business and we are confident that together, we can build on our momentum and deliver Palmdale's trusted services and solutions to more customers."

Citizens M&A Advisory acted as exclusive financial advisor to Palmdale and Citizens provided debt financing to support the transaction.

About First Reserve
First Reserve is a private equity firm exclusively focused on investing across diversified energy, infrastructure, and general industrial end-markets. Founded in 1983, First Reserve has nearly 40 years of industry insight, and has cultivated a network of global relationships. First Reserve has raised more than $32 billion of aggregate capital since inception. Its investment and operational experience have been built from over 750 transactions, including platform investments and add-on acquisitions, on six continents. The firm's portfolio companies have operated globally in over 60 countries and span the entire energy and industrial spectrum. Please visit www.firstreserve.com for further information.

About Palmdale Oil
Palmdale is a leading statewide provider of fuels, lubricants, and chemicals with delivery and management solutions. Headquartered in Fort Pierce, Florida, Palmdale is a family-owned business operating in more than 50 counties across Florida.

Contacts

For First Reserve
Jonathan Keehner / Erik Carlson
Joele Frank, Wilkinson Brimmer Katcher
212.355.4449
[email protected]

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SOURCE First Reserve