Flyers Energy Sold to World Fuel Services
Offen Petroleum Acquires Petroleum Management and Pathfinder Transportation
Parkland Acquires Lynch Oil
Kickback Rewards Acquires CMI Solutions
Grants Available for Rural C-Stores

FLYERS ENERGY SOLD TO WORLD FUEL SERVICES

AUBURN, CA. — Flyers Energy Group LLC, one of the largest fuel distributors and retailers in the Western U.S., has sold its operations to World Fuel Services of Miami, FL.

The purchase price for the deal, which was announced at the end of October, was approximately $775 million, of which $675 million is to be paid at the closing in cash and up to $50 million of World Fuel Services common stock. The additional $100 million will be paid in equal installments over the two years following the completion of the sale.

"The existing World Fuel geographic footprint and services are complementary to Flyers and make this a natural fit," said Flyers Managing Partner Walt Dwelle, based in Auburn, CA. "Having made acquisitions many times ourselves, we recognized the value in this match."

Dwelle continued, "Given the relative markets in which we operate, we are comfortable that our phenomenal Flyers team members will be at home with World Fuel."

Included in the sale are Flyers Energy's holdings and operation of unattended cardlock fuel locations across the United States on the CFN, Pacific Pride, and Voyager networks. At the time of the sale, Flyers owned the largest number of cardlock locations on the CFN network. The company operates cardlocks under the Flyers and Quick Fuel brands in California, Nevada, Arizona, Colorado, New Mexico, Texas, Kansas, Missouri, Iowa, Minnesota, Wisconsin, Illinois, Missouri, Indiana, Michigan, Ohio, Kentucky, North Carolina, Georgia and Florida.

Also included in the sale are Flyers' lubricants and bulk fuel distribution warehouses along with its wholesale fuel distribution contracts with independent fuel stations. Flyers owns bulk plants in Bloomington, Newark, Sacramento, San Diego, Santa Cruz, South Lake Tahoe, Santa Rosa, and Truckee in California; Battle Mountain, Elko, Fallon, Las Vegas, Lovelock, Minden, and Sparks in Nevada; and Phoenix and Tucson in Arizona for both fuels and ExxonMobil-branded lubricants.

Not included in the sale is Flyers' Sustainable division, which is focused on renewable or "green" energy sources and has investments in solar, ethanol, biodiesel, cogeneration and renewable natural gas production facilities. It will continue to be led by Ken Dwelle.

The Nella Invest division, which owns a portfolio of holdings in real estate, hospitality, and other business interests, was also not included in the deal. It will be led by former Flyers CEO Rick Teske.

The Flyers management team will continue to lead the company's day-to-day operations for the businesses being sold. World Fuel Services is expected to retain the majority of the company's 475 employees.

"We could not be more excited to welcome the Flyers customers and talented team members to the World Fuel Services family," said Ira Birns, Executive Vice President and Chief Financial Officer of World Fuel Services, announcing the deal. "The Dwelle family has built an exceptional company, and we are proud to have the opportunity to build upon their legacy."

The sale is expected to close on or around the beginning of 2022.

"The acquisition of Flyers will significantly expand the breadth of our land business in North America," concluded World Fuel Services CEO Michael Kaspar, "further enhancing our supply and distribution capabilities as well as our fleet fueling platform."

OFFEN PETROLEUM ACQUIRES PETROLEUM MANAGEMENT AND PATHFINDER TRANSPORTATION

COMMERCE CITY, CO. — Offen Petroleum announced the purchase of Petroleum Management LLC and Pathfinder Transportation in the beginning of November as part of the company's effort to "enhance its activities across the U.S."

The purchase price for the companies was not disclosed.

A distributorship based in Platteville, Colorado, Petroleum Management LLC., marketed motor fuels under the Shell, Conoco, Phillips 66, Exxon, Mobil, Valero and Sinclair brands in Colorado under the leadership of Co-Owners Bill Scaff and Ed Holloway.

Following the sale, Petroleum Management will continue to operate its convenience stores in the territory as well as "supply a select portfolio of third party dealers."

Pathfinder Transportation LLC, is a distributor of propane in the territory of Missouri, Arkansas and Oklahoma though its Tri-State Propane LLC division. It is based in Hiwasse, AR., under the leadership of of John Holloway.

"We are very pleased to complete these two deals to continue our efforts to be a leading consolidator of motor fuel and propane distribution companies in the United States," stated Offen Petroleum CEO Bill Gallagher. "I am pleased that Bill, Ed, and John each have entrusted us to carry on their respective company legacies of providing best-in-class service to their customers."

PARKLAND ACQUIRES LYNCH OIL

BURLEY, ID. — Lynch Oil, with operations in southern and central Idaho, has been acquired by Parkland USA, in a deal that closed in November. The purchase price was not disclosed.

Included in the deal are Lynch Oil's distributorship along with five service stations with convenience stores, two travel centers, two car washes, and a rail storage terminal.

Parkland officials estimate the addition of Lynch Oil will add over 47 million gallons of annual fuel sales to their operations.

"This acquisition advances our strategy by strengthening our retail convenience network and supply advantage in a growing market where we already have a significant presence," said Doug Haugh, president of Parkland USA, announcing the deal. "We are excited to welcome the Lynch team to Parkland and look forward to growing our customer base and providing them with the quality products and exceptional service they expect."

Parkland has been focused on expanding its operations in the Pacific Northwest in recent years. The company opened a U.S. Regional Operating Center in Idaho Falls, ID., following their acquisition of Conrad & Bischoff earlier this year and officials say they are looking to increase their business in the "fast-growing markets" in the West including Idaho, Wyoming, Utah, Nevada, and Montana.

Parkland USA is a division of Calgary, Alberta-based Parkland Corporation. It services customers across Canada, the United States, the Caribbean region and the Americas.

KICKBACK REWARDS ACQUIRES CMI SOLUTIONS

TWIN FALLS, ID. — KickBack Rewards Systems has acquired back-office software provider CMI Solutions.

The new, combined company will be rebranded to KRS.

KickBack Rewards had focused on "engagements and rewards programs" such as digital coupons, loyalty programs, and app development. With the addition of CMI, the company will now offer accounting, convenience store management, price book, wholesale fuel management, and business intelligence services.

"The assets that the acquisition of CMI brings to the table all perfectly compliment KRS's offerings," said Patrick Lewis, founder and CEO of KRS, announcing the deal. "We didn't just acquire the company because of its exemplary product offerings, but also because of the concentration of talent that it has developed. It is my intention to retain every employee so that we can maintain all of the expertise necessary to continue to grow the products into the future."

KRS now has over 130 employees with offices in Twin Falls, ID., as well as Charlotte, NC., and say they are "actively hiring."

"Our founder, Dwight McKnight, and I speak for the entire CMI team. We are excited about the marriage of CMI and KRS and it unites the strengths of our two teams under the KRS brand," said CMI President and CEO Gregg Peele. "The combination provides customers with unparalleled opportunities to optimize their operations while maintaining absolute ownership of their data. KRS's technology ensures CMI products will continue to thrive long into the future."

KRS will now provide "integrated enterprise software solutions" to the convenience, petroleum and restaurant industries.

GRANTS AVAILABLE FOR RURAL C-STORES

WASHINGTON, D.C. — The U.S. Department of Agriculture will be awarding "at least $4 million in grants" to improve access to healthy foods and create jobs in underserved rural areas.

The grants will be awarded to stores and food distributors "working to improve access to healthy foods in underserved areas. These awards are expected to create and preserve quality jobs and revitalize low-income communities."

The grants are available under the Healthy Food Financing Initiative Targeted Small Grants Program, funded by the 2018 Farm Bill.

To apply, applicants must submit a letter of interest by Tuesday, Dec. 7, 2021. If invited to apply, applicants must submit a full application.

Additional information on how to apply is available at www. investinginfood.com.

Originally published in the December 2021 issue of O&A Marketing News.
Copyright 2021 by KAL Publications Inc.