MODESTO, Calif. -- In a deal that will expand its business portfolio in the Golden State, Boyett Petroleum has completed the purchase of fuel distribution contracts for 90 branded 76 and Valero gas stations in California from MCW Fuels Inc., a unit of MCW Energy Ltd., Toronto.
Most of the sites are in Southern California, with other sites in the Northern California region.
MCW Fuels now supplies petroleum products to more than 500 U.S. West Coast gas stations and provides commercial fuels to more than 100 businesses. It has regional branding rights to brands such as 76, Valero and Alliance.
Earlier this week, MCW Energy Group Ltd. management disposed of substantially all of the assets of MCW Fuels, its fuel distribution business, selling them to Boyett Petroleum for $5 million (U.S.), executing a definitive agreement to sell its rights to distribute fuel to all of its branded and unbranded gas stations.
As reported in a 21st Century Smoke/CSP Daily News Flash, prior to completion of this transaction, Modesto, Calif.-based fuel jobbership Boyett Petroleum was the largest Valero-branded distributor on the West Coast. This transaction will add 51 sites. The addition of the 76- branded dealers mostly located in Southern California brings into balance Boyett Petroleum's 76-branded station business throughout the state.
Assets of MCW Fuels excluded from the sale included, without limitation, a gas station, including associated goodwill, located in Thousand Oaks, Calif., all cash and cash equivalents; all accounts payables due to customers, suppliers and third parties; all accounts receivable, notes and other receivables from third parties, customers and related parties due to MCW Fuels; all prepaid expenses and deposits; all rights, title and interest to any real property leased or owned by MCW Fuels; and all intellectual property rights related to the name MCW.
The transaction closed on December 18.
For 75 years, MCW Fuels has been distributing oil and diesel products throughout western United States. Established in 1938, MCW Fuels now markets more than 150 million gallons of branded and unbranded fuels per year, with 2012 sales totaling $363.3 million (up from sales of $241.5 million in 2011 and sales of $188.7 million in 2010).
Boyett Petroleum offers a variety of products and services nationwide, including wholesale fuel sales, retail and petroleum management services, agricultural fuel sales and the Cruise Americard universal fleet fueling card. It operates more than 50 retail locations under the Cruisers, Boyett Petroleum and Kwik Serv brands.