09, Oct. 2020
Tenex Capital Management Exits Cadence Petroleum Group

New York, NY – October 9, 2020 – Tenex Capital Management (“Tenex”) is pleased to announce the sale of Tenex Capital Partners II, L.P. portfolio company Cadence Petroleum Group (“Cadence”).

Cadence Petroleum Group (fka Pugh Lubricants) is a distributor of lubricants and fuels across automotive, commercial, and industrial end markets.  Tenex initially invested in the third generation Pugh family-owned business in November 2016.  During Tenex’s ownership period, Cadence completed five add-on acquisitions to become one of the largest lubricant distributors in the U.S., while diversifying the business across geographies, vendor partners, and end market verticals.  Tenex and management worked in close collaboration to lead a comprehensive operational transformation of the business, including: (i) implementing enhanced financial and operational reporting and analytics, (ii) installing a CRM system and a standardized management process, (iii) rebranding at the corporate level while maintaining local brand equity, (iv) securing new distribution territories, and (v) integrating all acquisitions under one centralized leadership structure.

Tenex Managing Director Gabe Wood commented, “Tenex’s partnership with the Cadence management team and our success merging six different family-owned businesses highlights Tenex’s commitment to investing in growth and the infrastructure required to support it.  We have thoroughly enjoyed our time working together with the Pugh family and the other key leaders of the business and are excited to see Cadence enjoy continued growth in the future.”

As part of the transaction, Bob Romano, former CEO of Tenex portfolio company JPW Industries and CEO of Cadence Petroleum Group, will continue his engagement with Tenex as an Operating Advisor to its Funds.

Stephens Inc. served as lead financial advisor to Cadence while Lazard Middle Market also co-advised the company; Koley Jessen served as legal counsel to Cadence with respect to the transaction.

The transaction was effective as of October 1, 2020.

About Cadence Petroleum Group:

Cadence Petroleum Group is a leading distributor of oil and lubricants used in automotive, commercial and industrial applications. Formed when leading distributors in the southeastern United Sates joined forces, Cadence is among the largest distributors in the US. Bolstered by strong partnerships with the leading national oil brands, Cadence is proud to provide the best products and services for automotive, commercial, and manufacturing facilities. Cadence serves the Carolinas, Virginia, Tennessee, Kentucky, Ohio, West Virginia, Georgia, Alabama, Arkansas, and portions of Mississippi, Louisiana, Texas, Illinois, Indiana, and Missouri.  For additional information, please visit

About Tenex Capital Management:

Tenex Capital Management is a private equity firm that invests in middle-market companies.  Tenex uses an in-house team of hybrid investment professionals skilled in operational leadership, investing and capital markets structuring to maximize long-term value creation.  Tenex’s deep operating experience allows the firm to collaborate with management teams to capitalize on business and market opportunities.  Tenex has successfully invested in a diverse range of industries, including industrials, business services, healthcare, building products, and auto aftermarket, among others.  For additional information, please visit