EL PASO, Texas -- Making official a sale that had been expected for several months, Western Refining Inc. on January 15 announced that it is acquiring 31 convenience stores in southern Arizona from Reay's Ranch Investors LLC.
With this deal, Western Refining is growing its retail network, bringing its total number of outlets to 261. The stores and are being added through lease arrangements.
As reported in a 21st Century Smoke/CSP Daily News Flash, the convenience stores will be rebranded under Western Refining's Giant brand and will sell various brands of fuel. The conversion of these stores began on January 12, and the company expects it to be completed by January 16.
Western Refining's El Paso, Texas, refinery will supply the fuel volume of approximately 30 million annual gallons. These stores will increase Western Refining's overall retail fuel volume by approximately 10% and merchandise sales by approximately 15%.
"The addition of these stores to our retail network is consistent with our strategy to grow retail within the supply reach of our refineries with minimal capital investment," said Jeff Stevens, Western Refining's president and CEO. "Our retail team has a track record of efficiently integrating new locations into our network and growing sales volumes. We look forward to continuing this with these additions."
Speculation about a Reay's sale had circulated in the industry since last fall, although the eventual buyer was not known.
Tucson, Ariz.-based Reay's Ranch Investors owns convenience stores under the Super Stop and Minit Market names. It also owns IGA grocery stores and standalone Subway restaurants.
El Paso-based Western Refining is an independent refining and marketing company. Its retail segment includes gas stations, convenience stores and unmanned fleet fueling locations in Arizona, Colorado, New Mexico and Texas.Western Refining, El Paso, is an independent refining and marketing company. Before this acquisition, its retail segment included 230 gas stations and convenience stores in Arizona, Colorado, New Mexico and Texas under the under the Giant, Mustang, Sundial and Howdy's brands. Its refining segment operates refineries in El Paso, and Gallup, N.M., and the wholesale segment includes a fleet of crude oil and finished product truck transports and wholesale petroleum products operations in Arizona, California, Colorado, Georgia, Maryland, Nevada, New Mexico, Texas and Virginia.
Also, Western Refining owns the general partner and approximately 66% of the limited partnership interest of Western Refining Logistics LP. It also owns the general partner and approximately 39% of the limited partnership interest in Ridgefield, Conn.-based Northern Tier Energy, an independent downstream energy company with refining, retail and pipeline operations that serves the PADD II region of the United States. Northern Tier Energy operates refinery in St. Paul Park, Minn. It has 163 c-stores and 74 franchised c-stores primarily in Minnesota and Wisconsin, under the SuperAmerica brand
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