SPRINGFIELD, Ill. -- In a deal first announced in March, EZ Energy USA Inc. has confirmed that it is purchasing Harper Oil Co., a family-owned business based in Springfield, Ill., with 26 convenience stores dubbed Harper On the Way.
Our company has been exploring various means of growth over the past couple of years, and selling our portfolio of stores intact to EZ Energy will allow our employees and our customers to benefit from the future growth of our brand, Harper CEO Chris Sommer said in a statement, according to a report in the State Journal [image-nocss] Register.
Since the beginning of the year, EZ Energy has slowly built a stable of pending acquisitions on its way to achieving a goal of more than 100 c-stores. As of press time, letters of intent to buy had been signed for 53 sites, and another 45 or so could come under contract soon, according to Oren Zahavi, the companys vice chairman.
Previously, EZ Energy did not name the companies from which they were purchasing stores; however, Zahavi told CSP Daily News that Harper Oil had alerted all its employees to the pending purchase and thus went public about the sale this week. The deal is expected to close this summer.
Also, Zahavi previously declined to say what markets EZ Energy was targeting; however, it is now safe to say the Midwest will be the Israel-based companys milieu. We believe that Harper On the Way locations represent a strong brand in the Illinois market and will provide EZ Energy USA with a solid platform for future growth, Zahavi said.
Harper Oil founder Perry Pierce launched the family business when he and a partner opened a refined-oil plant in Springfield in 1933. The first Pierce Oil station opened in 1937. Harper Oil was organized in 1956, combining the first names of Pierce and his partner at the time, Harvey Crusius.
Harper vice president Bruce Sommer said it was not an easy decision to sell the operations. Were still going to be in business as Harper Oil Co., and well still be a family business in Springfield, and thats important to us, said Sommer, according to the newspaper report.
Sommer said the family has agreed not to discuss other details as part of a confidentiality agreement with EZ Energy.
Illinois Petroleum Marketers Association executive vice president Bill Fleischli told the newspaper the Harper announcement is the latest example of consolidation of regional, family-owned c-store companies that has cut his membership from 1,200 in the mid-1990s to about 500.
If you dont get bigger, you tend to get out. These companies have capital to buy these facilities, and I guess they see opportunity here, said Fleischli. He added that he was disappointed to learn of the sale, but certainly Harper has terrific locations and have a terrific organization. They are a fine company, and I think they would only sell to a fine company, he said.
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