Boyett Petroleum Purchases Branded Contracts of MCW Fuels
Poma Distributing, Redwood Oil Sold To Flyers
Kinder Morgan to Acquire Hiland Partners
Kum & Go Settles ADA Lawsuit
Pacific Ethanol to Acquire Aventine

BOYETT PETROLEUM PURCHASES BRANDED CONTRACTS OF MCW FUELS

MODESTO, CA. — Boyett Petroleum has acquired the fuel distribution contracts of Glendale, CA.-based MCW Fuels, expanding the company's operations in the state of California.

Included in the deal were supply contracts for 51 Valero service stations and 36 stations operating under the 76 brand. In addition, Boyett acquired the distribution category of 76-branded master reseller.

"We have the infrastructure in place for the most part to handle the additional requirements of the former MCW customers," said Ken Berns, vice president of Wholesale for Boyett Petroleum. "From a sales personnel standpoint, we have a good position."

With the addition of 51 Valero stations to Boyett Petroleum existing book of business of 80 branded Valero sites, the company will maintain its position as the largest Valero-branded distributor on the West Coast.

MCW had operated as two divisions, the Southern California-based distributorship and MCW Energy Group Limited, which operates an oil sands technology company in Vernal, UT. "Ultimately, they decided to concentrate on tar sands," stated Berns.

The transaction closed effective as of December 18, 2014.

POMA DISTRIBUTING, REDWOOD OIL SOLD TO FLYERS

AUBURN, CA. — Flyers Energy, LLC announced two major acquisitions in January; the jobbership acquired the assets and operations of Poma Distributing Company of Bloomington, CA., and Redwood Coast Petroleum of Santa Clara, CA. The price for the transaction was not disclosed.

Both Poma Distributing and Redwood Coast Petroleum were owned by Poma Holding Company Inc., of Bloomington under the leadership of CEO and President Randal Malchow.

Included in the deal are all the assets of the companies including nine CFN cardlock sites in Southern California's Inland Empire area and Sonoma County in Northern California, wholesale distribution contracts for more than 100 branded gasoline stations, and geographic distribution rights for Mobil, Castrol, and Chevron commercial lubricants brands.

"Poma is a good operation and a great fit for us," said Walt Dwelle, managing partner of Flyers Energy, announcing the deal. "These transactions will effectively triple Flyers' lubricants volume, whose commercial lubricants distributorships had been previously restricted to northern Nevada and areas around Lake Tahoe and Santa Cruz."

Dwelle continued, "This deal allows us to expand our wholesale supply and lubes businesses into new geographic areas, particularly Southern California, where we are a relatively new participant in the market."

Poma Distributing CEO Dave Larimer stated, "We believe Flyers is an excellent buyer of the Poma Companies. Their strong heritage and rich family history in California are well aligned with the Poma Companies as is their passion around providing superior guest service."

Flyers Energy officials added they are "hopeful to complete several more acquisitions in 2015."

KINDER MORGAN TO ACQUIRE HILAND PARTNERS

HOUSTON, TX. — Kinder Morgan, Inc. has signed a deal to acquire pipeline and logistics company Hiland Partners from its founder, Harold Hamm, and Hamm family trusts for approximately $3 billion.

The majority of Hiland's assets are located in Montana and North Dakota, primarily moving crude oil and gas from the Bakken fields. At closing, the crude oil gathering systems will have more than 1.8 million acres dedicated under long-term, fee-based agreements with major Bakken oil producers.

Included in the deal are approximately 1,225 miles of gathering pipelines that deliver crude oil to the Bakken basin's major takeaway pipelines and rail terminals, 2,500 miles of natural gas lines, fuel storage and processing plants. Hiland's crude oil transportation pipeline, the Double H Pipeline, is a 485-mile pipeline currently under construction that will transport crude oil from Hiland's Dore Terminal in North Dakota to Guernsey, Wyoming, where the Double H interconnects with Pony Express Pipeline. The Double H Pipeline was in the final stages of construction when the deal was announced and was expected to begin service by the end of the January.

"The Bakken is the one producing basin in which Kinder Morgan doesn't have a large presence," said Kinder Morgan Chief Executive Rich Kinder. "We are in the Tier 1 sweet spot of the Bakken. Otherwise we wouldn't have done the deal."

Kinder also added, "If there is a silver lining in these clouds of low commodity prices, it's going to be the ability to make some extremely good acquisitions over the next 12 months."

The acquisition is expected to close in the first quarter, pending regulatory approval.

KUM & GO SETTLES ADA LAWSUIT

DES MOINES, IA. — Kum & Go has settled a class-action lawsuit filed against the convenience store chain alleging it was not in compliance with Americans With Disabilities Act (ADA) regulations.

The suit was originally filed in April 2013 alleging that Kum & Go did not comply with the ADA, including a lack of fuel dispensers "with operable controls at an appropriate height" and accessible parking spaces that were wide enough and in an appropriate location.

In the settlement, Kum & Go admitted to no wrongdoing but agreed to make modifications at the company's fuel islands and convenience stores.

Among the changes agreed to were installing fuel assistance calling devices at fuel pumps, relocating dispenser controls, moving parking spaces for disabled customers to be closer to store entrances, widening parking spaces, adjusting store aisles to accommodate wheelchairs and scooters, relocating self-service food and drink items, and modifying curb ramps, entrances and doors.

The company said it will also invest in training of its employees to increase their understanding of special needs customers.

Kum & Go agreed to bring 100 stores into compliance within two years and 75 additional stores each year thereafter until modifications are completed chainwide. The cost of the upgrades is estimated in the millions of dollars.

"We have invested, and will continue to invest, substantial sums to improve accessibility at our stores, and in some instances have agreed to offer accessibility options that exceed those required by law," stated Kum & Go spokeswoman Traci Rodemeyer.

The lawsuit was filed by Gary McDermott of Clinton, IA., who uses a wheelchair, on behalf of all Kum & Go patrons who use wheelchairs or scooters. He will receive $15,000 as the class representative as part of the settlement. The law firm RSH Legal of Cedar Rapids, IA., was awarded attorney fees of $137,500.

Kum & Go operates more than 420 convenience stores in 11 states including Colorado, Montana, and Wyoming.

PACIFIC ETHANOL TO ACQUIRE AVENTINE

SACRAMENTO, CA. — Pacific Ethanol Inc., based here, has announced plans to acquire Aventine Renewable Energy Holdings Inc., a Midwest-based producer of ethanol and related products.

Under the terms of the agreement, Pacific Ethanol will acquire all of Aventine's outstanding shares in a stock-for-stock merger transaction as well as assuming Aventine's $135 million in debt.

Aventine will be operated as Pacific Ethanol's wholly-owned subsidiary.

Pacific Ethanol will double its ethanol production capacity with the addition of Aventine, making it the fifth largest producer and marketer of ethanol in the United States. The combined company will have a total ethanol production capacity of 515 million gallons per year and, with Pacific Ethanol's marketing business, it is expected the company will sell over 800 million gallons of ethanol annually.

"With this transaction, Pacific Ethanol strengthens its unique production and marketing advantages by diversifying into two additional discrete markets and connecting its Western markets with Aventine's Midwest and Eastern markets for low-carbon renewable fuels," said Neil Koehler, CEO of Pacific Ethanol, announcing the deal.

"The merger offers a rare opportunity to combine the experience, market presence and diversification that Aventine brings with our industry leadership in Western U.S. markets. It will complement our existing business as we balance assets across new regional markets, expand our footprint for the production and marketing of low-carbon renewable fuels, diversify our technology and increase our mix of coproducts."

The transaction is expected to close in the second quarter of 2015, pending regulatory and stockholder approvals.

Originally published in the February 2015 issue of O&A Marketing News.
Copyright 2015 by KAL Publications Inc.