SAN ANTONIO: Valero Energy completed its $6.9 billion acquisition of refinery company Premcor last week without the help of an outside M&A communications firm.
Valero's eight-person in-house team handled all of the deal's communications, just as it had done in 2001's $4 billion acquisition of Ultramar Diamond Shamrock.
Mary Rose Brown, Valero's SVP of corporate communications, said her team's specialized knowledge of the energy sector and experience in similar deals allowed it to forgo hiring any expert counsel. "This was not a new drill for us," she said.
Valero has become the largest oil refiner in North America and one of the 20 largest US companies, but it has never had an ongoing relationship with a PR firm and has no plans to hire one.
While most companies bring in a PR adviser for major acquisitions, a substantial number still handle deals in-house. According to data provided by M&A intelligence service Mergermarket, about 33% of the 59 corporate acquisitions worth more than $5 billion since January 2004 have been completed without an outside PR adviser.