Aloha Petroleum Sold To Susser for $240 Million
Western Refining to Acquire Wingate Plant in Gallup
FleetCor to Acquire Comdata for $3.45 Billion
Hawaii Minimum Wage Increase to Begin on January 1
Historic Gas Station Turned Into Park, Artwork

ALOHA PETROLEUM SOLD TO SUSSER FOR $240 MILLION

HONOLULU, HI. — Aloha Petroleum, the largest independent gasoline marketer in the state of Hawaii, has been acquired by Susser Petroleum Partners MLP. The price for the transaction was reported at $240 million.

Included in the deal is 100% of Aloha Petroleum's outstanding common stock, making Susser Petroleum the owner and operator of the company's service stations, convenience stores, wholesale business, and terminal operations on Oahu, the Big Island of Hawaii, Maui, and Kauai.

Susser Petroleum officials say they will operate Aloha "as a separate entity with current management and employees." Susser will also maintain the Aloha and Shell brands currently in place on the company's 100 service stations in the Hawaiian islands.

"Aloha Petroleum has a long history in Hawaii and we are extremely proud of the outstanding business we have built together as a team," said Aloha's President and Chief Executive Officer Richard Parry, announcing the deal. "On behalf of the management team and all of our employees, I would like to say that we are excited to become part of the Susser Petroleum family. The depth of industry expertise and financial strength that Susser brings to the company will allow Aloha to better serve our retail, wholesale, and fuel terminal customers."

The acquisition of Aloha Petroleum is a major move westward for Susser. At the time of the merger, Susser had operations only as far west as New Mexico and concentrated its distribution business in Texas, Oklahoma, Kansas, and Louisiana. The company reportedly distributed 1.7 billion gallons of motor fuel annually to its wholesale customers as well as to its own Stripes and Sac-N-Pac convenience stores.

"Hawaii is a great new market for us with an economy that has grown faster than the overall U.S. economy in the last few years," said Bob Owens, Susser Petroleum Partners' Chief Executive Officer, explaining the company's move westward. "Aloha Petroleum has an impressive legacy of growth, profitability and operational excellence."

He added that the acquisition of Aloha Petroleum "will allow us to expand our current geographic footprint and extend our overall business capabilities into refined products terminals."

The deal is expected to close at the end of the year, subject to regulatory approvals.

WESTERN REFINING TO ACQUIRE WINGATE PLANT IN GALLUP

EL PASO, TX. — Western Refining, Inc. has announced plans to acquire the idled Wingate Fractionation Plant in Gallup, New Mexico from ConocoPhillips Company. The price for the purchase was not disclosed.

The 25,000 barrel per day (bpd) Wingate facility includes rail loading and offloading capabilities and storage facilities in addition to natural gas liquids fractionation capability.

Western Refining President and CEO Jeff Stevens said, "The strategic location of the Wingate facility is a great addition to the logistical assets of Western. It is conveniently located near our Gallup Refinery. This transaction will afford Western greater flexibility in the Four Corners region as it will provide approximately 125,000 barrels of pipeline-connected seasonal NGL storage for our Gallup Refinery; crude oil loading and transportation capabilities, both east and west, through the rail loading terminal; and pipeline connectivity to Western Refining Logistics assets."

The purchase is expected to close in October.

In addition to its refineries in El Paso and Gallup, Western Refining transports and markets petroleum products in Arizona, California, Colorado, Nevada, New Mexico, and four other states as well as operating retail service stations and convenience stores in Arizona, Colorado, New Mexico, and Texas.

FLEETCOR TO ACQUIRE COMDATA FOR $3.45 BILLION

NORCROSS, GA. — Cardlock and payment company FleetCor Technologies, Inc., has signed a deal to acquire Comdata Inc., for $3.45 billion.

Comdata provides electronic payment solutions and is an active part of the petroleum marketing industry. As an issuer and a processor, Comdata provides fleet, virtual card, and gift card services to over 20,000 customers.

At the time of the acquisition, Comdata reported over $54 billion in payments annually and a staff of approximately 1,300 employees.

"We have followed Comdata's growth and development for many years and are excited today to be bringing the companies together" said Ron Clarke, chairman and chief executive officer of FleetCor Technologies, Inc. "Comdata's virtual payments business will add a completely new growth leg to FleetCor. We believe that the combination will result in significant synergies as we implement our operating disciplines to their portfolio of businesses."

With the acquisition, FleetCor officials say they will be able to expand the company's North American fuel card business "into new, unserved markets."

FleetCor says they will also be looking to enter the "virtual payments space, an early innings high growth category that could one day be a very substantial business."

Fleetcor will reportedly fund the purchase with $2.4 billion of new debt and the issuance of approximately 7.3 million shares of FleetCor common stock to Ceridian LLC, the holding company that was the former owner of Comdata. The cash payments will be used to pay off Comdata's outstanding indebtedness.

"This transaction marks an exciting new chapter for Comdata. FleetCor has a history of driving synergistic growth for acquired companies and I'm confident Comdata's businesses can flourish as part of the combined organization," said Stuart C. Harvey, Jr., chairman, president, and chief executive officer of Comdata.

HAWAII MINIMUM WAGE INCREASE TO BEGIN ON JAN. 1

HONOLULU, HI. — Hawaii will begin increasing its minimum wage from its current standard of $7.25 to $7.75 as of January 1, 2015.

The minimum wage hike is the first of four increases that were signed into law earlier this year. Under Hawaii Senate Bill 2609 (Act 82), there will be additional 75 cent increases in the next three years, making the Hawaii minimum wage $10.10 on January 1, 2018.

Hawaii's tip credit, which applies to workers who receive tips such as waiters and waitresses, bartenders, and valets, is also increasing under the new law.

HISTORIC GAS STATION TURNED INTO PARK, ARTWORK

GLENDALE, AZ. — A historic gasoline station in Glendale, AZ., has been purchased by the city and turned into part of an artwork at the entrance to the area's historic district.

The 240 square foot gasoline station was originally built in 1930 by its owners, Ed and Bessie Morcomb. With the success of the station, the Morcombs built an adjoining home, made from adobe. When city officials had planned to tear down the house and gas station, located at Grand and Myrtle Avenues, to build a "more appealing" entrance to Glendale's historic district, local residents petitioned the City Council to keep the historic buildings.

The City of Glendale purchased the gasoline station and adjoining house for $226,000 in 2006, then restored the buildings with a $105,000 Federal grant over the course of nine years. Both buildings are now listed on the National Register of Historic Places.

The gasoline station and adobe house have now become the centerpiece of an artwork called Circles of Time in a park that serves as the entrance to the historic district. The gasoline station is surrounded by a circular stone wall decorated with historic photos. Rusted hubcaps and old car parts that were found on the site have been molded into sculptures.

Free tours of the facilities may be arranged by calling the Planning Department at the City of Glendale.

Originally published in the October 2014 issue of O&A Marketing News.
Copyright 2014 by KAL Publications Inc.