NEWARK, Del. -- Passion, aptitude and a overview of not just one, but two convenience-store chainsthat's what you'll get if you have a conversation with Ben Leroy, one of three principals of Newark, Del.-based Sweet Oil on the eve of the sale of the company to a larger neighbor.
In August, Leroy and his partners announced the sale of the 74-site chain to Mechanicsville, Va.-based GPM Investments, operator of 146 Fas Mart and Shore Stop stores. As the sale nears completion in the next couple of weeks, CSP Daily News chatted with Leroy about the [image-nocss] decision to sell, why the company chose GPM, and a reluctance to look too far into the future.
CSP: Were you shopping the company around to find a buyer?
Leroy: We made some decisions about 12 months ago that this is the direction that we wanted to go and had a short list of suitors, by choice. We very quickly narrowed it down to GPM because of the nature of the people we were dealing with. They've been absolutely outstanding to deal with. [President and CEO] Dave McComas is a class act and a man of his word. We knew that right away, and of course, we had a number in mind [that would make this sale go through] and we achieved our goal.
But one of the most important things to us was: We started this company with one station 10 years ago and built it from nothing. So there's a lot of blood, sweat and tears in it. And I wanted to ensure the proper handling of our baby, this wonderful company. So we wanted to ensure that it was in the hands of the right group that would take care of it and nurture it the way we have. I think Dave sensed that right up front because we didn't have to tell him [that]; he sensed it and he told us, We're going to take care of your people. We're gong to take care of your stations. So this is a perfect fit.
CSP: Tell me about your chain.
Leroy: We're in five statesPennsylvania, New Jersey, Delaware, Maryland and Virginiabut predominantly, we're in Delaware and we've got tremendous market share in Delaware. I'm not sure about volume, but we might be No. 1 in terms of store count. Of the 74 sites we have, I believe 50 of them are in Delaware. And we have a huge concentration in Newcastle County. It's a perfect overlap. When you take the map of [GPM's] stations and then you overlay our chain, it's impressive.
CSP: So you were familiar with how GPM's stores operated. How did you regard them?
Leroy: We had great respect for them. What they've done with that company is absolutely incredible. Look where they were three years ago [in bankruptcy]. They're going to be a force to reckon with on the East Coast.
CSP: You said you had a short list of suitors. What went into putting that together?
Leroy: It could have been a large list, but we made it short. We only talked to a few people because we didn't need to [talk to more]. We feel like who we spoke with, whoever we decided to go with, was going to take [the company]. We have 50 sites in a state that's only 100 miles long. There are several people that would pay dearly for that kind of instant market share. So we got to pick and choose [who we wanted to work with], and we picked GPM.
CSP: What made this the right time to sell your business?
Leroy: There are three equal partners in Sweet Oil, myself, Mark Greco and Bill Sweet. We were at a point where we had grown so quickly and so significantly that to go to the next level, we needed to really change our infrastructure. We needed to change our technology and really upgrade a ton of things. We had to go from the operations we are today to hiring a high-paid president and getting in-house attorneys, and that represented a significant investment in time and money. Meanwhile, one of the partners [Sweet] was at a point in his life where he would rather slow down than bulk up again. So at that point, it was a no-brainer for the other two of us to say, That's fine.
You know, we're three guys that started with one gas station. We're gas-station dealers, and we started this company on a wing and a prayer; on a great idea and a boat load of hard work. So when you get to this sizewe're a formidable size nowwe were possibly reaching the end of where wejust the three of uscould take this. And if we wanted to go to the next step, we needed to really bulk up and get some more executives in here that know the business to help.
CSP: So what's next for you?
Leroy: I've been asked that many times. I love the gas business, and Dave has kept the door open for all three of us to interact with GPM in a mergers and acquisitions capacity. We know this market very well, and we might be able to help him grow. Having said that, we're not on staff; we're not taking jobs. So what I'm going to do next, I'm not even focusing on it. My job today is to make sure that this transition goes seamlessly, and I'm going to focus all of my energies on that to make sure that my people are taken care of, to make sure that my stations are taken care of, and my customers. I'll worry about what's next after I accomplish that goal.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.