Colonial Group, Inc. has entered into an agreement to acquire Foster Fuels, Inc., a Brookneal, Virginia-based distributor of fuels, lubricants, propane and mission-critical energy services.

The transaction, announced August 28, is expected to close October 1, subject to customary closing conditions and regulatory approvals. Financial terms were not disclosed.

Founded in 1921, Foster Fuels serves commercial, industrial, agricultural, transportation and residential customers and has developed a broad energy distribution and logistics business that includes lubricants as well as fuels and propane.

Colonial Group, also founded in 1921, is a Savannah, Georgia-based, fourth-generation family-owned company with operations spanning energy, chemicals, logistics, transportation, terminaling, and fuel and lubricant distribution.

Through Colonial Oil Industries, the company provides fuel and lubricant supply and distribution solutions across 34 states.

The Foster acquisition follows another lubricant-related expansion by Colonial earlier this year. In May, Colonial Oil Industries acquired Atkinson Oil Company, a Sandersville, Georgia-based commercial distributor of fuels and lubricants serving the Sandersville and Macon markets.

Under the Foster transaction, Foster Fuels will continue operating under its existing name and leadership, and all employees are expected to remain with the organization.

“Deciding to sell our century-old family business was hard. Deciding who to sell it to was easy,” said Watt Foster, CEO of Foster Fuels. Foster cited the companies’ similar histories, values and longstanding business relationship.

Christian Demere, president and CEO of Colonial Group, said Colonial was attracted to Foster’s business capabilities, people and culture.

The acquisition will further expand Colonial’s fuel and lubricant distribution footprint and adds another established regional marketer to its growing network. Coming on the heels of the Atkinson Oil acquisition earlier this year, the Foster transaction also underscores Colonial’s continued expansion in petroleum distribution.

About Colonial Group

Colonial Group, Inc., headquartered in Savannah, Georgia, is a fourth-generation family-owned company with operations in energy, logistics, transportation, terminaling, chemicals, and fuel and lubricant distribution. Through Colonial Oil Industries, the company provides fuel and lubricant supply and distribution solutions across 34 states.

About Foster Fuels

Foster Fuels, Inc., headquartered in Brookneal, Virginia, is a family-owned energy company founded in 1921. The company supplies fuels, lubricants, propane and related energy services to commercial, industrial, agricultural, transportation and residential customers, and also provides emergency fuel delivery and logistics services.