The San Ramon, Calif.-based chain is placing 94 of its stores and/or vacant sites up for sale, as reported yesterday in a Morgan Keegan/CSP Daily News Flash. The sites were purchased en masse from ConocoPhillips in 2008, essentially taking the major-oil company out of the retailing business.[image-nocss]
Now, says Sam Hirbod, president and CEO of Pacific Convenience & Fuel, it's time to weed out those that don't fit his young company's mold.
"Some sites don't fit the volume or the size [we like]," he told CSP Daily News yesterday. "Others don't fit within our market place; there's stuff all over the place, from Georgia, South Carolina, Texas." Pacific Convenience & Fuel primarily operates in California, Colorado, Nevada, Oregon and Washington.
Pacific Convenience & Fuel has engaged William Trefethen of Trefethen Advisors LLC and Timothy Haves of Grubb & Ellis Inc. Petroleum Services Group to divest the 94 sites in 13 states, including California, Washington, Oregon, Colorado and several Midwest and East Coast states. The planned dispositions include sites with convenience stores and/or fueling stations, closed sites with fueling capacity and land banks.
These assets were selected because they no longer fit Pacific Convenience & Fuel's long-term portfolio goals as determined following the company's recent strategic evaluation of its overall holdings, according to a press release. Pacific Convenience & Fuel views the sale of these sites as an exceptional business opportunity for the right third-party buyers.
A supply contract with ConocoPhillips is not required to purchase the sites, according to Hirbod.
"Working with ConocoPhillips, we put together a portfolio that we both agree should be sold with or without [a ConocoPhillips] supply agreement," he said. "It's a soft way of saying everyone's welcome. They can come in and make a bid, and chances are we're going to go with the best bidder and just move on from there."
Pacific Convenience & Fuel, however, continues its efforts toward supporting and growing its ConocoPhillips brands, as well as identifying and executing on retail opportunities that may be available in specific markets in which it currently operates.
"These dispositions are part of an overall strategy to position Pacific Convenience & Fuel as a strong competitor in the markets it services."
Fifty-four of the sites are owned and operated by Pacific Convenience & Fuel, 18 are company-owned and fee-operated, and 22 are vacant land banks.
William Trefethen, managing partner of Trefethen Advisors, said, "The sale represents a unique opportunity to acquire established stores and strategically located land banks in attractive markets across the country."
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