More than 75% of ExxonMobil-branded stations in the United States are owned or supplied by independent distributors.
Although Allexon declined to comment [image-nocss] on specifics of the deal, a Southside source confirmed the talks included 172 sites in Maryland and Delaware, but wasn't certain the deal was "100% done." The source, who wished not to be named, said, "Exxon made an announcement to its dealers that the stores have been sold to us, but there's still some final paperwork that needs to be done."
The deal would mean a boundary expansion for Southside, which currently has 42 company-operated stores in Virginia and Florida. "It was a wonderful opportunity that presented itself to us, so we wanted to strike while we could," the source said.
Southside will also purchase ExxonMobil's Baltimore Company Fleet operation and a portion of the Newington Company Fleet operation.
As reported in CSP Daily News on October 28, 55 station operators in Maryland filed a lawsuit earlier this year, claiming they should be given the first chance to buy the stations that they lease and operate from the oil refiner, under the federal Petroleum Marketing Practices Act. That suit was dismissed earlier this month, according to Allexon.
"Upon completion of this sale, ExxonMobil will assign its franchise agreements [without any changes to Petroleum Marketing Practices Act obligations and rights] to Southside Oil," he said in a written statement.
Allexon also wrote that ExxonMobil employees whose positions will be impacted by the sale will receive employment offers from Southside "pending successful completion of pre-employment process and continued satisfactory performance. Service station employees are employed by the dealer and thus not impacted by this change in ownership."
He added that ExxonMobil is "committed to making this conversion as smooth as possible" and does not expect the change to impact customers at the locations, who will still be able to purchase Exxon products.
Chester, Va.-based Southside Oil is a wholesale gasoline distribution company serving the Mid-Atlantic and southern United States. "Southside Oil is an experienced and successful player in the retail fuels marketplace. It has longstanding and successful business relationships with gas station dealers," according to Allexon.
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