SCOTTSDALE, Ariz. -- Giant Industries has never had a huge retail presence, but the oil company will add 12 convenience stores with its purchase of Dial Oil Co., as reported yesterday in a CSP Daily News Flash. That bring Giant's c-store total to 145.
In addition to the retail sites, the refiner and marketer of petroleum products announced it is acquiring Farmington, N.M.-based Dial Oil's entire operation, which includes 12 Sundial gas station/convenience stores, six warehouses, four bulk petroleum distribution plants, 16 cardlock fueling locations and [image-nocss] a fleet of truck transports.
Brothers Ron and Dick Dial, owners of Dial Oil Co., will continue working in the industry as employees of Giant Industries, Giant spokesperson Mark Cox told CSP Daily News. Attempts to reach the Dials for comment were unsuccessful.
Cox said Giant has been in talks with Dial for several months trying to nail down the deal, which will give Giant an increased presence in New Mexico and Colorado. We've been working with them over a period of time, and it seemed to work out well this time, Cox said. Yes, there have been discussions in the past and they just never got good footing.
Fred Holliger, Giant's CEO said Dial will be operated as a wholly-owned subsidiary of Giant. "Dial Oil is a good fit with our existing operations and provides us an opportunity to grow our wholesale business in the Southwest, he said. Dial's wholesale fuel and lubricant markets strategically complement our Phoenix Fuel operations. The combination will geographically expand our existing markets and provide us with a platform for additional profitable growth.
Dial's annual fuel and lubricant sales volumes are approximately 100 million gallons.
Cox said Giant will not initially rebrand the Sundial stores, and the stores will retain their Chevron and Conoco gasoline brands. "We believe that Dial's retail sites are well located and complement Giant's existing retail stores in the Four Corners area, said Holliger. We further believe our marketing programs, when integrated with those of Dial's, will provide us excellent opportunities to continue to grow both fuel volume and merchandise sales."
He added, Although we plan to continue to purchase a large portion of Dial's fuel needs from third-party suppliers, this acquisition serves as another stepping stone to optimally balance our supplies between our own refineries and third-party sources. We believe that effectively managing the distribution of finished products in the fast-growing Southwest market will maximize the overall profitability of all our assets."
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