INDUSTRYROUNDUP FAST FACT
Cumberland Farms Turns Focus to C-store Operations Haseotes family will reportedly sell Gulf Oil LP to ArcLight for $1 billion The top 10 chains in the convenience store industry alone represent 27.7 percent of the industry’s total stores, with 42,396 units. Source: Convenience Store News Top 100 report (page 24)
QUOTABLES
“Don’t be afraid to give an opinion about a product or bringing something into the stores. Women should never lose sight of what they mean to the industry. Your opinion matters, so let it be known.” — Tammy Floyd, CST Brands Inc. (page 46)
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he New England convenience and fuel retailing landscape is in a state of transition as two major players announced acquisition deals within weeks of each other. Most recently, the Haseotes family, owner of Cumberland Farms Inc., is reportedly selling off its Gulf Oil LP fuel business. According to a source close to the transaction, the business will be sold to Boston-based private equity firm ArcLight Capital Partners for more than $1 billion. As first reported by the Oil Price Information Service (OPIS), Gulf employees were told of the pending move at the company’s Framingham, Mass., headquarters in May. Sunoco LP, Speedway LLC parent Marathon Petroleum Corp. and Global Partners LP were among the finalists that also submitted “ambitious bids” for Gulf Oil, which had been up for bid since October, OPIS reported. The deal with ArcLight could close as early as late July or early August, a source told Convenience Store News. Once completed, the Haseotes family will concentrate on expanding the Cumberland Farms convenience store brand. This deal represents ArcLight’s first venture into the branded fuels business, as it will pick up a network of more than 2,500 sites in 30 states. According to
12 Convenience Store News | JULY 2015 | WWW.CSNEWS.COM
OPIS, Gulf also owns a transportation fleet of nearly 200 trucks and a network of unbranded fuel sales via proprietary and third-party terminals. When contacted by CSNews, Gulf Oil said it does not comment on the company’s ongoing strategic and operating matters, and particularly “not on rumors and/or speculative matters.” ArcLight has invested more than $13 billion in 90 transactions since it was founded in 2001. The private equity firm did not return a phone call seeking comment. News of the agreement broke just days after 7-Eleven Inc. revealed plans to acquire Tedeschi Food Shops Inc., which operates 182 convenience stores in Massachusetts and New Hampshire. Terms of the deal were not disclosed. The transaction is expected to close in mid-2015.