Savannah-based Colonial Group has agreed to acquire Virginia-based Foster Fuels, a move that expands its presence across commercial, industrial, residential, agricultural, and transportation energy markets.

Foster Fuels, founded in 1921, provides fuel, lubricants, propane, and mission-critical energy services, including emergency fuel response for critical industries and natural disasters, according to a press release issued on Friday. The company's emergency fuel response business has supported disaster recovery efforts, a niche that has grown in visibility as hurricanes and other severe weather events have repeatedly disrupted fuel supply chains along the U.S. East Coast.

Under Colonial ownership, Foster Fuels will retain its brand and leadership, and all employees are expected to remain with the company. Financial terms of the transaction were not disclosed.

The deal is expected to close on October 1, subject to regulatory approvals and customary closing conditions.

The acquisition builds on Colonial Group's earlier expansion in the fuel sector. In May, Colonial Oil Industries, a subsidiary of Colonial Group and a marine fuel supplier, acquired fuel and lubricants distributor Atkinson Oil Company. According to the firm's website, Colonial Oil Industries supplies bunker fuels at ports in Florida, Georgia, North Carolina, and South Carolina. The back-to-back deals come amid broader consolidation among regional fuel and lubricants distributors in the United States, where larger energy groups have been acquiring family-owned operators to broaden their geographic reach and service lines.

Source: Ship & Bunker