SC Fuels, Pilot Energy Swap Assets
Tesoro to Convert Hawaii Refinery to Terminal
Brad Hall & Associates Acquires Red Eagle Oil
World Fuel Services Buys Multi Service Assets
PMAA To Hold PAC Fundraiser in Napa

SC FUELS, PILOT ENERGY SWAP ASSETS

ORANGE, CA. — SC Fuels, based here, has signed a deal to trade some assets with Pilot Flying J, substantially increasing SC Fuels' presence in the Western markets and strengthening Pilot Flying J's holdings in Texas.

Under the terms of the deal, announced at the end of 2012, SC Fuels will take possession of the businesses formerly known as GP Resources of Rancho Dominguez, CA., CL Bryant of Fresno, CA., and Canyon States Oil of Phoenix, AZ. All three businesses had been acquired by Maxum Petroleum in the last several years and had just been sold to Pilot Flying J in a deal that closed last Fall. The division was continuing to operate under the Maxum West name.

The Western marine operations of Pilot Flying J were not included in the deal.

In exchange, SC Fuels has agreed to divest its business formerly known as United Fuel & Energy with operations primarily in Texas, to Pilot Flying J.

With the swap, SC Fuels has added major assets to its holdings in California, Arizona, Nevada, New Mexico, and Colorado.

"Maxum's West Coast assets complement our geographic footprint and fit well within our core markets," stated Steve Greinke, chief operating officer of SC Fuels. "This acquisition will add significant long-term value to our company and provide SC Fuels the opportunity to strengthen our market presence in the Western U.S. and leverage our operating platform. We are very pleased to welcome the Maxum West team to SC Fuels."

TESORO TO CONVERT HAWAII REFINERY TO TERMINAL

KAPOLEI, HI. — A year after announcing plans to sell their refinery here, Tesoro Corporation has announced they will convert the facility to an import, storage, and distribution terminal.

The oil company said it plans to halt operations at the 94,000-b/d refinery in April to begin to convert the facility to a terminal.

Tesoro says that once the conversion is complete, its Hawaii distribution system and retail assets will be offered for sale, including the repurposed refinery as well as its 32 gas stations and convenience stores in operation in the Hawaiian islands.

Tesoro has been a major supplier to the Hawaii market for many years and the Kapolei refinery was the largest refinery in Hawaii. The company's pipeline system supplies terminals at the Honolulu International Airport, the Honolulu Harbor, and for the United States military services.

Tesoro will continue to support its existing distribution system during the refinery conversion and the sale of its terminal, distribution, and retail assets.

With the conversion of the Kapolei referiny to a terminal, there will only be one refinery in operation in the Hawaiian Islands: the Chevron refinery in Kapolei, with a capacity of 54,000 bpd.

BRAD HALL & ASSOCIATES ACQUIRES RED EAGLE OIL

IDAHO FALLS, ID. — Brad Hall & Associates, based here, has acquired Red Eagle Oil of Cody, WY., concluding an auction that was ordered by the court last fall. The purchase price for the jobbership was $9.45 million.

Included in the deal were 16 service stations with convenience stores, several bulk plants and fuel transports. The distributorship will now operate under the name Teton Petroleum Transportation and the service stations/c-stores will be rebranded to "Good2Go Stores."

"The Red Eagle business will continue with new ownership but the same management," said Red Eagle financial adviser Thomas Kim, announcing the sale. The Hinze family, which had been the founders and owners of Red Eagle, will continue to operate the service stations and convenience stores.

The family had begun their business with one service station in Ralson, WY., 20 years ago and was able to grow the company's operations to locations in Cody, Lovell, Riverton, Buffalo, Casper, Sheridan and Guernsey, WY., as well as Hardin, MT. Following the economic downturn, the company had difficulty collecting money owed to them by their vendors, forcing them into Chapter 11 bankruptcy.

"We looked to the tools available to us to follow through on our fiduciary responsibilities," Brad Hinze told local reporters. "That meant filing for bankruptcy. It was a tool to reorganize the business."

Prior to their latest acqusition, Brad Hall & Associates owned over 60 service stations in New Mexico, Arizona, Utah, Idaho and Indiana, including their recent purchase of 28 stores from Every Ready Oil in New Mexico.

WORLD FUEL SERVICES BUYS MULTI SERVICE ASSETS

MIAMI, FL. — World Fuel Services has signed a deal to acquire assets of Multi Service corporation for approximately $137 million.

Multi Service is a financial transaction company specializing in fleet, government, and commercial payment programs, processing over 8 million transactions annually. Its products include the Multi Service Fuel Card for fuel purchases, payment systems for tolls, bridges, and tunnels, and government payment systems for fuel procurement.

"We look forward to welcoming the Multi Service team to World Fuel," said Michael Kasbar, president and CEO of World Fuel Services, in an official statement. "Multi Service will significantly expand our existing payment processing business and will further help us leverage technology across our global platform."

PMAA TO HOLD PAC FUNDRAISER IN NAPA

ARLINGTON, VA. — The Petroleum Marketers Association of America has scheduled a fundraiser for its Small Business Committee PAC in Napa Valley, CA., sponsored by the PMAA Western Region.

The event, led by Co-Chairmen Gerry Ramm and Michael Fields, will be held April 8-9, at the Embassy Suites Hotel in Napa Valley. The two-day event will include a wine tasting, winery tours, picnic lunch and dinner. The tours have traditionally offered access to wineries and tastings of wines that are generally not available to the public.

Those who have attended in the past have noted that this event is an excellent opportunity to develop and strengthen relationships and support the PMAA while enjoying the fruits of the Napa Valley.

Registration for the event is a $500 donation for the principal and $400 for their spouse or guest. The Napa tour will be limited to 35 people.

For more information or a registration form, visit www.pmaa.org.

Originally published in the February 2013 issue of O&A Marketing News.
Copyright 2013 by KAL Publications Inc.