Central Valley Fund exits Anabi Oil investment

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DAVIS, California — The Central Valley Fund (“CVF”), a private investment fund focused on middle-market companies, today announced its recent exit of an $8.5M mezzanine investment in Anabi Oil Corporation and its affiliates (“AOC” or the “Company”). CVF led the transaction with its co-investor, San Diego-based Huntington Capital, and partnered to support the Company’s acquisition of certain Shell-branded retail gasoline properties and related wholesale distribution rights in Northern and Southern California.

The transaction helped AOC expand throughout California and become the market leader in the Inland Empire. Founded in 1991 with a single station, AOC has distinguished itself as a leading station operator across any number of metrics within the Shell system for years. The acquisition of these assets coupled with AOC’s existing platform, characterized by strong operations, has allowed the company to maximize customer traffic at the retail pump and in the convenience store. Despite the statewide decline in gasoline sales and a moribund California economy, AOC has powered through these market challenges and delivered strong operating results.

The Company not only upgraded its existing owner/operator portfolio with this acquisition but also significantly expanded its revenue base by gaining rights to distribute gasoline to over eighty (80) stations throughout California. This second aspect of the transaction enabled AOC to become a major regional player with retail property interests, operational responsibilities, and wholesale distribution capabilities throughout the state.

Jose Blanco, a partner with CVF, stated, “It has been a great working relationship with the company and being a part of Anabi Oil’s expansion. Through the tireless efforts of the entire AOC team, they integrated the new stations and executed the Wholesale business beautifully. The horizon for fueling stations and distributors will remain challenging as alternative fuels emerge, more auto hybrids appear on the road, and evolving state and federal regulations requiring well-capitalized and efficient operators. Anabi Oil remains well poised to manage these challenges and thrive.”

Blanco continued by saying that “upon the launch of Central Valley Fund II in June 2012, with over $100M in committed capital, we will continue to look for similar opportunities where we can support strong operators acquire assets or competitors and capitalize on a transitioning U.S. economy”.

Media Contact:

Jose Blanco
Partner, Central Valley Fund
Ph. 530-757-7004 ext. 227