Renewable Energy Group Acquires Northern California Distributor Dawson Oil Company
AMES, Iowa, May 2, 2022 – Renewable Energy Group, Inc. (REG) (NASDAQ: REGI) announced today the acquisition of Dawson Oil Company, a bulk fuel distributor and cardlock owner, located in Northern California. Dawson Oil is a full solution provider, offering diesel, gasoline, DEF and lubricants.
Dawson Oil Company brings approximately 24 million gallons of fuel sales per year to the REG portfolio. The company operates six cardlocks in Northern and Central California, serving nearly 4,500 customers in the Greater Sacramento Valley. Dawson Oil will continue to serve existing customers and expand fuel offering to include REG EnDura Fuels™ to various end users such as commercial, agriculture, industrial, government and recreation vehicles and fleets.
"This acquisition is a strategic growth opportunity for us as California continues to lead the way in the adoption and transition to cleaner, lower carbon fuels," said Cynthia (CJ) Warner, REG President and CEO. "Combining REG's bio-based diesel expertise with the market and operational know-how of the Dawson Oil team will further position REG as the clean fuel transition partner of choice."
Dawson Oil has been family owned and operated for over 50 years, after being started in 1970 by Mel and Ellie Dawson. The Company has a strong reputation in the community, committed to providing customers with the products and services they expect, when they need them.
"I am proud of the heritage and business our team has built at Dawson Oil," said owner Kasey Fray. "I believe joining REG will grow our operation into the next chapter by introducing renewable fuels and providing our customers with the sustainable solutions they need, while maintaining the quality of service they expect."
This news builds upon REG's announcement from earlier this year that it had acquired Amber Resources, a leading fuel distributor in Southern California. The acquisition of Dawson Oil is REG's latest move in building upon its downstream strategy of delivering fuel directly to end users.
"We are thrilled for the opportunity to provide EnDura Fuels™ directly to end users in the Northern California market through the infrastructure Dawson Oil has available," said Bob Kenyon, Senior Vice President of Sales and Marketing at REG. "This combined team will provide current and future customers with the clean fuel solutions they need to meet their sustainability goals."
About Renewable Energy Group
Renewable Energy Group is leading the energy and transportation industries' transition to sustainability by converting renewable resources into high-quality, sustainable fuels. Renewable Energy Group is an international producer of sustainable fuels that significantly lower greenhouse gas emissions to immediately reduce carbon impact. Renewable Energy Group utilizes a global integrated procurement, distribution and logistics network to operate 11 biorefineries in the U.S. and Europe. In 2021, Renewable Energy Group produced 480 million gallons delivering 4.1 million metric tons of carbon reduction. Renewable Energy Group is meeting the growing global demand for lower-carbon fuels and leading the way to a more sustainable future.
Note Regarding Forward Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding REG's strategic growth plans, activities to support the adoption of renewable fuels, the addition of over 24 million gallons/year of fuel sales, , expanding low carbon fuel sales in California, our ability to continue business from these locations, and REG being a clean energy transition partner of choice. These forward-looking statements are based on current expectations, estimates, assumptions and projections that are subject to change, and actual results may differ materially from the forward-looking statements. Factors that could cause actual results
to differ materially include, but are not limited to, our inability to successfully integrate the acquired companies' operations into ours, failure to achieve expected synergies, the discovery of liabilities or other obligations of Dawson Oil, failure to expand low carbon fuel sales in California, limited customer demand for low carbon fuels, and other risks and uncertainties described in REG's annual report on Form 10-K for the year ended December 31, 2021 and subsequently filed Form 10-Q and other periodic filings with the Securities and Exchange Commission. All forward-looking statements are made as of the date of this press release and REG does not undertake to update any forward-looking statements based on new developments or changes in our expectations.