The largest woman-owned company in Houston has been acquired by a Cincinnati-based serial buyer.
Reladyne - the second largest private company in Greater Cincinnati - announced on April 25 that it had acquired Houston's Sun Coast Resources - one of the United States' largest wholesale petroleum marketers. The terms of the acquisition have not been disclosed.
Sun Coast, founded in 1985, will be led by Kathy Lehne. She and her husband Kyle Lehne are Sun Coast's chief development officer. Sun Coast is also a supplier of high-quality fuels and lubricants. It also offers chemicals, related programs, and other products. The Houston Business Journal named Kathy Lehne as a Women in Energy Leadership Honoree in 2015, Women Who Mean Business Honoree in 2016 and the Most Admired CEO Awards recipient in 2018.
According to HBJ Research, under Kathy Lehne's leadership the company has grown from a small business into Houston's largest women-owned enterprise, with revenues of over $1 billion in 2021. The company is also Houston's largest family-owned business, and the 21st largest energy employer. More than 400 people work for the company.
According to the Cincinnati Business Courier (an HBJ sister publication), Sun Coast's revenue is about half that of Reladyne. The company has reported revenues of $2.4 billion for 2021. Officials say that Sun Coast's acquisition will "materially increase" Reladyne’s market share in Texas, Louisiana and New Mexico.
Larry Stoddard said this in a press release:
Sun Coast's distribution capabilities, which include fuel, lubricants and DEF (diesel-exhaust fluid), along with its logistics and freight services, reach across the nation. They are complementary to Reladyne’s current automotive, commercial and industrial go-to market strategy and expand it significantly. This partnership will enable us to provide our customers with a more comprehensive range of products and services.
Reladyne has now signed its third deal of the calendar. In March, Reladyne signed two contracts: one with Grupo Lucalza in Guatemala and another with Allied Oil & Supply Inc. of Nebraska.
Reladyne, based in Sycamore Township in Ohio, is the largest lubricant distribution company in the United States. It also leads the market in diesel exhaust fluid, industrial reliability and fuel for automotive, industrial and commercial businesses. It was founded in 2010 through the merger of four companies. Since then, it has grown to over 85 locations with strategic acquisitions in the fuel distribution, industrial services and lubricant segments.
Reladyne's Sun Coast deal was handled by Lazard, as the lead M&A advisor, RBC, as M&A coadviser and Sidley Austin, as M&A lawyer, as well as Ropes, as finance legal counsel. Sun Coast was advised by Barclays, as the exclusive financial advisor, and King & Spalding LLP for legal advice.