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Janas announces sale of Sierra Energy's Oroville Bulk Plant Operations - 10/14/08

Janas Associates announces the sale of the Oroville Bulk Plant Operations of Sierra Energy to Interstate Oil Company, Inc. Janas Associates and Sierra Energy Management engineered the sale of Sierra Energy by operating or geographic divisions to maximize the overall sale price for the owner. Janas Associates represented the owner of Sierra Energy and identified interested buyers, structured the sale, and supported completion of the transaction.

We are all well aware of the challenges in the world economy in general and the petroleum industry in particular. Owners of petroleum distribution companies have experienced a number of challenges in recent years, including:

• Significant increases in working capital requirements.
• Pressure from the majors to consolidate.
• Cancellation of distributorships by the majors.
• Competition from increasingly larger distributors.
• Rising costs against shrinking margins.

Despite challenging market conditions, the sale of middle market companies remains active. Strategic buyers and Private Equity firms are active in the petroleum distribution industry where consolidation continues. Successful sale requires an investment banker who knows the industry. Janas Associates understands the industry and how to complete transactions.

Janas Associates is a leading middle market investment banker and management consultant representing owners in the petroleum distribution industry. For more information, please visit www.janascorp.com or contact a Janas Associates professional.