Bunker Holding Comments on LQM Acquisition, Says it's a "Logical Step" in the Growth Strategy

Marisa Femenia, CEO, LQM Petroleum Services: Image Credit: LQM

Bunker Holding Group (Bunker Holding) today in an emailed statement said the acquisition of LQM Petroleum Services Inc. (LQM) was a "logical step" that "diversifies Bunker Holding beyond trading."

Ship & Bunker confirmed the acquisition earlier today, and the company has now issued an official press release on the matter.

The financial terms of the deal were undisclosed.

"The acquisition of LQM is a logical step in Bunker Holding's growth strategy and brings together two family-owned businesses with similar values and a long history of working well together," said Bunker Holding Group CEO, Keld R. Demant.

"LQM is an excellent fit. It diversifies Bunker Holding beyond trading, providing a pure broker solution to customers who require it and strengthens our presence in the US market for blue-chip, high-volume customers."

Demant said it was "crucial" that LQM remains neutral to the market and maintain its current business model, and so would remain as a broker-only business operating as a separate division under Bunker Holding, continuing to work independently with third-party trading companies.

New CEO

Marisa Femenia, daughter of LQM founders Gerry and Barbara Van Geyzel, has been appointed CEO of LQM having spent the past five years working as VP of Sales and Corporate Development and as a marine fuels broker at the company.

"In Bunker Holding, we have a partner with the capabilities to provide a strong platform for the expansion of LQM's broker business in Europe and Asia," said Femenia.

"LQM's position as a broker neutral to the market will remain unchanged but we see the opportunity to expand our offering. LQM's customers will enjoy the same transparent and dedicated broker service, while gaining access to a wider range of products to meet their credit and risk needs."

Gerry Van Geyzel has been appointed Chairman of LQM where he will continue "during the integration period" until at least through January 2016, while also building his private interests in bunker fuel market technology platform ClearLynx.

Barbara Van Geyzel will remain unchanged in her role as a Sr. Executive and Broker.

"LQM is one of the largest international marine fuel oil brokers who handles approximately 10 million mts per year across ~250 customers worldwide. The Company has a strong presence in the United States with offices in New Jersey, Connecticut and Texas; as well as offices in London, Paris and Singapore," said Bunker Holding.

Commenting in last week's financial results, Bunker Holding, which is part of Selfinvest owned United Shipping & Trading Company (USTC), says that following the collapse of OW Bunker it is now ranked second in the world market but was "rapidly gaining on" leader World Fuel Services (WFS).

Last week Demant said that as a result of the demise of OW Bunker, as many has half of global bunker suppliers will not survive.