February 2024 Issue Highlights

PACWEST ENERGY ACQUIRES SUN PACIFIC ENERGY

KENNEWICK, WA. — PacWest Energy LLC, a joint venture between Jackson Energy and Shell Oil Products U.S., has acquired Sun Pacific Energy of Kennewick, WA., in a deal announced in December. The purchase price was not disclosed.

Included in the deal are Sun Pacific's nine large-format Sun Market-branded convenience stores, over 130 branded dealer accounts, and all transportation rolling stock and transportation assets.

Five of the c-stores, located in Richland, Kennewick, and Burbank, Washington, will be rebranded to Jacksons Food Stores and operated by Jackson.

"Our team, from the folks who brew your coffee to our leadership, believes we have an obligation to make every place we're lucky enough to do business in a better place to live for all its residents," said Cory Jackson, Jacksons Food Stores president, announcing the deal. "We're looking forward to supporting the Tri-Cities area however we can."

"The company's newly constructed, large-format Sun Market stores have a stellar track record of serving customers throughout the Tri-Cities market in eastern Washington, and Sun Pacific holds a dominant market share for branded fuel distribution in the greater Seattle area," Corner Capital, which brokered the deal, noted.

Sun Pacific, formerly known as Tri-City Oil Company, was founded by Jerry Eerkes in 1956. Jerry's son, Craig Eerkes, took over operations in 1981 and the company had been led in recent years by Craig and his son, Chris Eerkes.

The sale "represents the culmination of a lifetime of industry operations and investment," announced Craig and Chris Eerkes in a joint statement. "We are pleased that the PacWest team has retained almost all of our field and office staff where many new opportunities abound with a company of PacWest's size and scope."

Jackson Energy, PacWest Energy and Jacksons Food Stores Inc. own, operate and supply convenience stores and service stations across nine western states.

JF PETROLEUM GROUP ACQUIRES JONES COVEY

RANCHO CUCAMONGA, CA. — JF Petroleum Group, based in Morrisville, NC., has acquired Jones Covey Inc., of Rancho Cucamonga, CA. The purchase price was not disclosed.

The contracting, maintenance, and compliance services company will operate under the name of Jones Covey Group Inc., a JF Company. The majority of the Jones Covey 180-plus employees were offered positions with JF Petroleum Group.

Company founders Bret Covey and Bob Christie have joined the leadership team of JF Petroleum Group. Brett Crail, who had been serving as vice president of Construction for Jones Covey has been promoted to serve as the new president of the company.

"The growing demand for installation & construction services is continuing at an accelerated pace," said Keith Shadrick, CEO, JF Petroleum Group, announcing the deal. "The acquisition of Jones Covey will provide our customers with the benefits of partnering with the industry's most technologically advanced service and construction provider with a nationwide reach.

"This transformational acquisition creates the industry's first turn-key solution provider that can reach coast to coast. We are proud to welcome the employees of Jones Covey to the JF family. We are also pleased to welcome Bret Covey and Bob Christie to our leadership team."

Barrett Gilmer, Chairman of JF, added, "This acquisition solidified JF's leadership position in the industry and is yet another demonstration of our commitment to bring our customers best-in-class turn-key solutions on a truly national scale."

SUNOCO TO ACQUIRE NUSTAR ENERGY

DALLAS, TX. — Sunoco LP has announced a deal to acquire NuStar Energy L.P. for approximately $7.3 billion, including assumed debt.

NuStar Energy operates approximately 9,500 miles of pipeline and 63 terminal and storage facilities that store to distribute crude oil, refined products, and renewable fuels along with ammonia and specialty liquids. The company has approximately 49 million barrels of storage capacity in the United States and Mexico.

Sunoco leadership said they chose to purchase NuStar to diversify their business, add scale, and "capture benefits of vertical integration by combining two stable businesses."

Sunoco is handling the sale in an all-stock deal, which has been unanimously approved by the board of directors of both companies.

The sale is expected to close in the second quarter of 2024.