Arizona Petroleum Marketers Association Golf Tournament
Nevada Petroleum Marketers & C-Store Association "Big Dogs" Howl
Society of Independent Gasoline Marketers of America Spring Conference
Want to see the photos that didn't make the issue? Check out the Cutting Room Floor.
Offen Acquires Petromark
HollyFrontier Buys Puget Sound Refinery from Shell
Performance Food Group Acquires Core-Mark for $2.5 Billion
Las Vegas C-Stores Can Deliver Alcohol
Shell, Turtle Wax Launch Move Clean
COMMERCE CITY, CO. — Offen Petroleum, based in Commerce City, CO., is acquiring Petromark of Harrison, Arkansas, a fuel distributor in the territory of Arkansas, Missouri, and Oklahoma. The purchase price was not disclosed.
Included in the deal is Petromark Inc., which sells Shell, Phillips 66, Valero, Sinclair, Conoco, and VP Racing branded fuel as well as unbranded fuel in its Midwest and Southern territory. Also included was Petromark Transportation LLC, Petromark's trucking company.
Petromark will operate under the Offen Petroleum name following the close of the deal, which is expected to be complete before the end of May.
Petromark was owned by Stephen Lair and Steve Turner; Turner will remain with the company following the acquisition.
"I am very pleased that we are able to add such a successful business to further the growth of Offen Petroleum," said Bill Gallagher, CEO of Offen Petroleum, announcing the deal.
"Petromark is a perfect fit to the Ozark Mountain Energy business which we acquired in December of last year," continued Gallagher. "Petromark allows us the opportunity to strengthen our contract dealer business and deepen our presence in the Ozark Region.
"Additionally, I am pleased that Steve Turner will be joining us to share his wealth of experience, knowledge and dedication to his customers that has made his company so successful."
"Stephen and I have enjoyed the experience of operating in both the retail and wholesale fuel businesses through the years and we are pleased that a company such as Offen, with the same dedication to operational excellence, will continue to serve our valued customers," said Steve Turner. "I look forward to working with Bill and his team as we jointly grow this business."
DALLAS, TX. — HollyFrontier Corporation has signed a deal to acquire the Puget Sound Refinery from Equilon Enterprises, doing business as Shell Oil Products U.S.
In the agreement announced in May, HollyFrontier agreed to a purchase price of $350 million for the property, plus hydrocarbon inventory to be valued at closing with an estimated current value in the range of $150-180 million.
Included in the sale is the 149,000 barrel per day refinery on 850 acres in Anacortes, WA., which produces gasoline, diesel, fuel oil, jet, propane, butane, and petroleum coke. Also included is the on-site cogeneration facility and related logistics assets including a deep-water marine dock, a light product loading rack, a rail terminal, and storage tanks with approximately 5.8 million barrels of crude, refined product and other hydrocarbon storage capacity.
"We are excited to announce the acquisition of the Puget Sound Refinery," said Mike Jennings, president and CEO of HollyFrontier. "We believe that the Puget Sound Refinery will complement our existing refining business, with sales into premium product markets and advantaged access to Canadian crude.
"We are committed to the continued safe and environmentally responsible operations of the facility and welcome Puget Sound's highly skilled workforce to the HollyFrontier family," Jennings added.
"This is another step towards reshaping our refining portfolio to drive resilient returns," stated Robin Mooldijk, Shell's EVP for Manufacturing. "HollyFrontier is a strong operator and we believe they will continue the refinery's legacy of prioritizing safety, environmental performance and care for people at the site and within the community."
The purchase of the refinery is expected to close by the end of the year, subject to regulatory approvals.
WESTLAKE, TX. — Convenience store distribution giant Core-Mark has been sold to Performance Food Group Company (PFG) for $2.5 billion in stock and cash. The deal was announced in mid-May.
Core-Mark will join fellow c-store distributor Eby-Brown as part of PFG's Vistar division following the sale but will continue to operate under its Core-Mark brand.
Core-Mark headquarters will remain in Westlake, TX., and Scott McPherson will remain Core-Mark president and chief executive officer following the close of the sale.
Tom Wake will continue as president and CEO of Eby-Brown, reporting to McPherson, following the consolidation.
"Core-Mark is an outstanding company that we believe will significantly strengthen our business diversification and expansion into the convenience store channel," said George Holm, PFG chairman and president, announcing the deal. "Core-Mark brings a highly skilled and experienced workforce along with an experienced senior leadership team, which will be valuable additions to the PFG family of companies."
Founded in San Francisco, Core-Mark was one of the largest wholesale distributors to the North American c-store industry with approximately $17 billion in net sales. The company has about 7,500 employees and operates 32 distribution centers across the U.S. and Canada including Western distribution centers in Tolleson, Arizona; Bakersfield, Corona, Los Angeles, West Sacramento, and Hayward, California; Aurora, Colorado; Albuquerque, New Mexico; Henderson, Nevada; Clackamas, Oregon; Salt Lake City, Utah; and Spokane Valley, Washington.
Core-Mark services about 40,000 customer locations in all 50 states in the U.S., plus five Canadian provinces and two Canadian territories.
"This transaction brings together two companies known for their customer-focused approach and dedication to their employees," said Scott McPherson, Core-Mark president and CEO.
"Our Board evaluated the transaction and determined this combination provides our investors immediate value and the opportunity to participate in the upside potential of being part of a larger, diversified and customer-centric supplier in the foodservice and convenience retail industry.
"The combination of our two highly complementary businesses creates an even stronger platform to drive growth."
"Adding convenience store distribution in 2019 built up the core strength of our organization, providing another important avenue for growth," said Patrick Hagerty, executive vice president of PFG and CEO of the Vistar division.
"Bringing Core-Mark to PFG will continue this journey and complement our existing portfolio. I look forward to us bringing together the best talent in convenience and welcoming Core-Mark associates at close."
The sale is expected to close in the first half of calendar 2022, subject to shareholder and government approval.
LAS VEGAS, NV. — The City of Las Vegas has passed a new law that allows convenience stores and restaurants to deliver alcohol inside the city limits.
The City Council took the action to help local businesses struggling with COVID restrictions as well as acknowledging the increasing demand for delivery services.
To offer alcohol delivery, Las Vegas businesses must have an off-premise alcohol consumption license. If they have that, they will need to add a new license that allows for delivery of bottled liquor, beer and wine anywhere in the city — except to casinos and hotels.
Delivery services will also be required to carry the new liquor licenses.
"The main crux of it is somebody at home that wants a 12-pack of beer delivered to their house would be able to do that," explained Anthony Stavros, Las Vegas mayor pro tem.
According to NACS, at least 35 states as well as Washington, D.C. and Puerto Rico have allowed on-demand alcohol delivery during the pandemic.
HOUSTON, TX. — Shell Lubricants U.S. and Turtle Wax have launched a new company, Move Clean, to offer in-vehicle hygiene systems for drivers.
Company leaders explained that they decided to found Move Clean to address the rising customer concerns around the cleanliness and safety of their vehicles — an issue that has been exacerbated by the COVID-19 pandemic.
"From the beginning of the pandemic we saw the automotive industry struggle to find a solution that fit their needs," said Nathan Fink, president of Move Clean. "While business was down, they suddenly had additional responsibility to provide their customers with a safe and clean experience. Without an automotive solution readily available we found businesses trying just about anything; many of which weren't effective or vehicle safe."
"We knew this was not a sufficient outcome for consumers, nor was it a sustainable business model for service providers so we set out to build a company with trusted industry partners who could provide best in class products in a sustainable way."
Move Clean will offer a line of vehicle hygiene products, including a proprietary disinfecting solution called Defend-X, an EPA-registered surface sanitizer that kills over 99.9% of germs.
"Consumer expectations for health and safety in all aspects of their lives are higher than ever," said Machteld De Haan, CEO of Pennzoil Quaker State Company and vice president of Shell Lubricants Americas. "In Shell's journey to provide a clean and safe experience for our customers, we looked for industry partners who were as committed as we are to bringing a safe, effective and sustainable solution to the market to protect people and get the industry moving again. Shell is proud to have worked with Turtle Wax to respond to these needs by helping to support the launch of Move Clean."
Move Clean products will be rolled out across the United States and will be distributed through Shell gasoline stations as well as "key transportation partners" over the next year.
"Our cars are breeding grounds for germs and high-touch areas such as the steering wheel, interactive touch screens, door handles, and belt buckles can spread lingering germs to the driver and other passengers," said Laurie King, COO, Turtle Wax. "With Americans spending considerable time in their vehicles, as well as an increase in fleet transportation disinfection needs to keep workforces on the go, the need for total vehicle hygiene has never been higher."
King added "Our alliance with Shell to support the formation of Move Clean allows us to continue that mission while also bringing incredible innovation that helps keep Americans safe."
Originally published in the
June 2021 issue of O&A Marketing
News.
Copyright 2021 by KAL Publications Inc.
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