HONOLULU -- Citing limited growth potential, Aloha Petroleum Ltd. could go on the market soon, pending the outcome of a review of its strategic alternatives.
As reported in a 21st Century Smoke/CSP Daily News Flash, Aloha Petroleum, Hawaii's largest independent gasoline-station owner and one of the biggest convenience-store operators in the Islands, is working with New York-based Macquarie Capital to review its strategic alternatives, which could include selling the company, according to a report in Pacific Business News. A source says a sale of the company could net $350 million.
The Honolulu-based convenience-store chain said it now finds opportunities and growth in its core business in the state are limited.
Pending the outcome of the Macquarie Capital review, Aloha Petroleum's alternatives could include strategic joint ventures or partnerships, the sale of a portion or all of the company’s stock and continuing to operate the company in its current form, according to the report. The review has been ongoing for a few months now.
“Aloha Petroleum has a remarkable history of growth in the Hawaii market, which resulted from strategic decisions to build new stores and terminals, as well as through acquisitions such as the Shell Hawaii operations in November 2010,” Aloha Petroleum president and CEO Richard Parry told Pacific Business News. “Macquarie Capital’s global expertise will assist Aloha in determining our next strategic directions that will best position our company for the future. The review will continue for the near term.”
Aloha Petroleum, with its Aloha Island Mart convenience stores, dates back to the early 1900s when it began as Getty Oil, according to CSPedia.net. The company is Hawaii's largest independently owned distributor of petroleum, diesel, biodiesel, ethanol and lubricants.
The 98-store chain owns and operates Island Marts and Jiffy Mart/Vista stores. It is also in a joint venture with the state's largest locally owned grocery retailer, Foodland Super Markets, with four Foodland Gas Stations that feature Aloha fuels. The company joined with Foodland Super Market Ltd. in March 2013 and opened the latest Foodland Gas Station in January 2014 on Maui. The sites feature a Foodland market and Aloha gas, selling three grades of gasoline--regular, plus and super, as well as diesel fuel. All locations are jointly operated.
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