NAPLES, Fla. -- A newly formed petroleum company plans to keep Evans Oil's 70 employees in southwestern Florida after it finalizes the purchase of the Naples company's assets, reported The News-Press.
Florida Petroleum registered the winning bid for Evans Oil's assets at an auction last week, said the report.
Florida Petroleum's $15.75 million bid beat the $15.55 million bid from Great Lakes Petroleum, Charlotte, N.C. Both companies offered to assume more than $4 million in financial obligations for Evans Oil, which last year filed for Chapter 11 bankruptcy protection.
Other bidders included Taylor, Mich.-based distributor Atlas Oil Co. and Ann Arbor, Mich.-based aviation fuel distributor Avfuel Corp., added a report by The Naples News.
Atlas Oil spokesperson Mary Zaleski told the newspaper, "We do not comment on potential mergers and acquisitions."
Avfuel Corp. representatives were unavailable for comment.
One of Florida Petroleum's owners is Naples resident Casey Askar, who owns a restaurant franchise based in Commerce Township, Mich., according to the News-Press. Askar Brands LLC has more than 200 Papa Romano's and Mr. Pita locations across the country. Last year, Askar took over Big Al's restaurants in Naples, Bonita Springs and Fort Myers, Fla.
The other bidders would have merged Evans Oil into their other operations, while Florida Petroleum has definitive plans to keep and grow those jobs, Askar told the Naples News. With Florida Petroleum's ownership, the local company would get new management, but it would operate under the same name.
"I have had conversations with them, and my understanding is that Florida Petroleum wants to continue operations in Naples, where the Evans Oil facility is currently located," Soneet Kapila, who was named the court-appointed facilitator for the auction, told the News-Press.
Askar said that he sees a huge opportunity to grow Evans Oil, which has approximately 70 employees. "We'll be growing rapidly through talent and technology, which will bring in a lot of staff," he told the paper.
Though management will change, he's not looking to eliminate employees, including the company's current owner and manager, Randy Long.
Florida Petroleum's five-year plan is to grow Evans Oil from a 50-million-gallon-a-year company to a more than 500-million-gallon business, Askar said.
"Right now, they are mainly in Southwest Florida, but we would grow instantly in the state of Florida and grow even outside of the state of Florida," he added.
Evans Oil, a major distributor for Chevron gas stations, will continue to operate as usual until a deal is finalized by September 13, the News-Press said.
If Florida Petroleum can't finalize its deal with Evans Oil, the company will enter negotiations with Great Lakes Petroleum, said the report.
"They are considered a backup bidder to Florida Petroleum," Kapila added.
Evans Oil distributes bulk oil, gas, diesel and other petroleum products. The company formed in 1959. Its fuel supplies come from ports in Tampa, Fort Lauderdale and Jacksonville.
The oil company's customers include gas stations, convenience stores, marinas, golf courses, car dealerships and school districts.
Evans Oil transported more than 50 million gallons of product and generated $3.5 million in earnings before interest, taxes, depreciation and amortization in 2010, the report said, citing Bloomberg; however, it owed more than $35 million to Fifth Third Bank at the time of its bankruptcy filing 15 months ago, the News-Press said. Fifth Third Bank pushed for the bankruptcy at the time, it said.
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