SCOTTSDALE, Ariz. —The pace of mergers and acquisitions in the convenience-store industry showed no signs of subsiding during the second quarter of 2015. Three very large transactions were announced or completed during the quarter.

First, 7-Eleven Inc. agreed to acquire Tedeschi Food Shops and its 182 locations in the Northeast. Second, United Pacific, formerly known as United Oil Co., completed the acquisition of 251 gas stations and convenience stores from Pacific Convenience & Fuels LLC.  Finally, Global Partners LP completed the acquisition of a portfolio of 97 owned and leased gas stations and dealer supply agreements from Capitol Petroleum Group for approximately $156 million.  

There were also many smaller transactions that were either announced or completed during the second quarter. The common themes throughout all of these transactions:

• They were completed by one of the major players in the industry (either a master limited partnership, a major convenience-store owner and operator, or a private-equity sponsor).
• Premium prices were paid for quality assets in high-growth and strategic markets.
• There continues to be an unlimited appetite for acquisitions of all sizes and types, with there being far more interested buyers than sellers.

7-Eleven Inc.

In May, 7-Eleven Inc. entered into an agreement to acquire Tedeschi Food Shops, a 92-year-old, family-run, traditional convenience-store chain. Tedeschi only sold fuel at 15 of its 182 locations, which are all located in the Northeast. The deal will more than double 7-Eleven’s footprint in greater Boston and New Hampshire, where it currently operates and franchises 164 convenience stores.

CST Brands Inc./CrossAmerica Partners LP

CrossAmerica Partners LP, with partner CST Brands, entered into a definitive agreement to acquire the One Stop convenience-store chain based in Charleston, West Virginia. The transaction includes 41 company-operated One Stop convenience stores, four commission-agent sites, nine dealer fuel-supply agreements and one freestanding franchised quick-service restaurant. Of the 45 company-operated and commission agent sites, 30 are owned in fee. Five of the company-operated locations have quick-service restaurants. For the year ended Dec. 31, 2014, the aggregate 54 sites sold approximately 36 million gallons of motor fuel primarily under the Marathon and Exxon fuel brands, and had approximately $40.5 million in inside sales.

Alimentation Couche-Tard/Circle K

Cinco J Inc., dba Johnson Oil Co. and Tiger Tote Food Stores Inc., announced that Alimentation Couche-Tard’s Circle K closed on the acquisition of Tiger Tote’s 21 “The Tote” convenience stores and Johnson Oil’s 182 dealer locations. The stores will be rebranded to the Circle K brand, while the retail fuels and dealer locations will retain their current fuel brands through Circle K’s National Wholesale Fuel branding agreements.

Energy Transfer Partners LP/Sunoco LP

Sunoco LP announced that it has acquired eight Pico convenience stores in south central Texas from Westex Capital Ltd. of Del Rio, Texas. Sunoco LP will lease the stores to Stripes LLC, the Corpus Christi, Texas-based retail chain owned by Sunoco LP’s parent, Energy Transfer Partners LP. Stripes will operate the stores and will purchase all of the fuel sold at the locations from Sunoco LP. Six of the eight sites are currently branded Valero. The stores are located in the San Antonio area. NRC Realty & Capital Advisors LLC, Chicago, served as exclusive financial advisor to Westex in connection with the transaction.

In another Texas transaction, Susser Petroleum Property Co. LLC has emerged as the lead bidder in an auction for the assets of Aziz Convenience Stores LLC in a chapter 11 bankruptcy proceeding pending in McAllen, Texas. The assets consist primarily of 28 Quick Stop gas stations and convenience stores in Hidalgo County, Texas. Potential bidders have until July 15 to submit a qualifying bid. The auction is scheduled for July 20.

CONTINUED: More Notable Transactions

Other Notable M&A Transactions

• United Pacific, formerly known as United Oil Co., completed the acquisition of a portfolio of 251 gas stations and convenience stores from Pacific Convenience & Fuels LLC. The acquired properties are located in California, Nevada, Oregon, Washington and Colorado, and operate under the My Goods Market and Circle K brands and offer 76- and Conoco-branded motor fuels. As a result of this transaction, United Pacific’s network now includes 319 company-operated stores and 60 fee-operated and leased locations. Fortress Investment Group LLC, New York, a diversified global investment management firm, acquired United Oil in July 2014 for an estimated $500 million.
• Global Partners LP completed the acquisition of a portfolio of 97 primarily Mobil- and Exxon-branded owned and leased gas stations and seven dealer supply agreements from Capitol Petroleum Group. The properties are located in the New York City and Prince George’s County, Maryland/Washington, D.C. markets. The purchase price, subject to closing adjustments, was approximately $156 million. In 2014, the acquired assets sold approximately 125 million gallons of fuel.
• Southwest Georgia Oil Co. Inc. announced the acquisition of 44 S&S Food Stores in Florida from Scaff’s Inc. Southwest Georgia Oil intends to maintain the S&S convenience-store brand, but will switch from BP to Marathon fuel at several locations.
• Imperial Oil Ltd., a leading Canadian integrated oil producer, refiner and marketer, announced plans to sell approximately 500 of its company-owned Esso gas stations and has begun to accept proposals from interested bidders. Calgary, Alberta-based Imperial Oil, which is majority-owned by Exxon Mobil, has broken up the 500 stations into a number of smaller packages that are split geographically, according to various sources. The assets are generally located in densely populated, high-traffic urban areas and many have car washes and Tim Hortons doughnut and coffee outlets. Analysts have speculated that the entire portfolio could be worth as much as $1 billion (Canadian; $832 million U.S.).
• ArcLight Capital Partners, a Boston-based private-equity firm, agreed to acquire the Gulf Oil fuel business from the Haseotes family. Joe Petrowski, formerly the chief executive officer of Cumberland Farms (also owned by the Haseotes family), will serve as the head of the new company.
• TravelCenters of America LLC, operator of the TA and Petro Stopping Centers travel center and the Minit Mart convenience-store brands, acquired 19 gas stations and convenience stores in Missouri and Kansas from GasMart USA, Overland Park, Kansas, for $27 million. TravelCenters said that it expects that the convenience stores at these locations, which average approximately 3,900 square feet in size, will be rebranded as Minit Mart, and that it may add quick-service restaurants at some of these locations.

Master Limited Partnerships (MLP)

• GPM Petroleum LP, which distributes motor fuel for the convenience stores of GPM Investments LLC, made an initial public offering (IPO) filing with the U.S. Securities & Exchange Commission (SEC). GPM Petroleum, an MLP spinoff from GPM Investments, is seeking an estimated $100 million from the proceeds of the IPO. As of April 15, 2015, Richmond, Virginia-based GPM Investments controlled more than 500 convenience stores under various brand names, including Fas Mart and Shore Stop, that sell motor fuel, merchandise, food, beverages and other products and services in the Mid-Atlantic, Southeastern, Midwestern and Northeastern United States. For the year ended Dec. 31, 2014, on a pro forma basis, GPM Petroleum distributed 461.7 million gallons of motor fuel to GPM-controlled convenience stores and 68.7 million gallons of motor fuel to third-party customers.
• Empire Petroleum Partners LP also filed a registration statement with the SEC for an IPO to form a master limited partnership. Empire, which currently distributes fuel to more than 1,300 gas stations and convenience stores across 27 states and the District of Columbia, hopes to raise $100 million with the offering. Empire’s fuel distribution network currently covers fuel outlets primarily in Texas, the Southeast, the Great Lakes and the Mid-Atlantic regions. Since 2011, Empire successfully completed 12 acquisitions, increasing its annual volume of distributed motor fuel from 165 million gallons to 919 million gallons in 2014.

CONTINUED: More Growth Initiatives

Growth Initiatives

• Mexican convenience store company OXXO stated that it wants to establish a major presence in Texas and plans to open 900 convenience stores in the next 10 years, investing more than $850 million and creating more than 6,000 jobs. The chain currently operates 12,400 convenience stores in Mexico and Central America. OXXO is part of FEMSA Group, the largest beverage company in Mexico. It is the largest independent Coca-Cola bottler in the world and an investor holding the second-largest equity stake in brewer Heineken. However, a major impediment to OXXO’s plans is a Texas law which prohibits retailers from being owned by firms with ties to the liquor industry. OXXO has asked the state legislature to repeal that law so that the company may begin its acquisitions.
• Wawa Inc. announced the grand opening of its first three convenience stores in the Fort Myers, Fla., area, marking its official entrance into Southwest Florida. Since its entrance into the Florida market in 2012, Wawa has opened 62 stores, located in the Orlando and Tampa markets, with plans to launch throughout the Southwest Coast and Daytona. By year’s end, Wawa will have opened 25 new stores in Florida.

Getty Realty Corp.

Getty Realty Corp. announced the sale of six operating and non-operating gas stations and 27 commercial and retail properties in Connecticut, Maine, Massachusetts, New Hampshire, New York, Pennsylvania and Rhode Island. NRC Realty & Capital Advisors LLC was retained by Getty Realty to coordinate the sale. In June, the company announced that it had acquired the fee-simple interests in 77 convenience stores and gas stations acquired from affiliates of Pacific Convenience & Fuels LLC and simultaneously leased to United Oil Co., for approximately $214 million. The sites are located in several high-growth regions, including northern and southern California, Colorado, Nevada, Oregon and Washington. The properties, which were acquired in connection with the acquisition by United Oil of most of the assets of Pacific Convenience & Fuels, operate under several well-recognized brands, including 76, Conoco, Circle K, 7-Eleven and My Goods Market.

Divestiture of Non-strategic Assets

• Grocery-chain Brookshire Brothers Inc. announced that it has entered into an agreement to sell 26 Polk Pick-It-Up convenience stores in eastern Texas to San Antonio-based Partners Investors C-Stores Ltd. Brookshire Brothers will keep its locations in Hudson, Central Heights, Central and Wells, the company said.
• Cambridge Petroleum Corp. (CPC) announced that it was selling its leasehold interests in seven gas stations and a fuel-supply agreement on one location in Pennsylvania, New Jersey, Connecticut and Rhode Island. All of the sites are former Getty Petroleum Marketing Inc. locations, and CPC will use the proceeds to pay a settlement to the Getty Petroleum Liquidating Trust.
• Thorntons Inc. announced that it was selling eight of the company’s convenience stores as a result of a strategic review.
• Gill Energy purchased Chester, N.J.-based Mohawk Oil Co. Inc. The sale included five fee and leased retail gas station assets with convenience stores, service bays and snack shops, as well as wholesale supply-only accounts and assignment of the branded Sunoco distributor agreement.
• M G Markets Inc., dba Mr. Gas Markets, sold six of its Marathon-branded convenience stores in eastern Tennessee to an undisclosed buyer to shift the focus to its wholesale company, McNutt Oil Co Inc., which sells commercial fuels and lubricants.

Although the second quarter of the year is usually relatively quiet in terms of merger-and-acquisition activity, 2015 certainly proved otherwise. If this is any indication of things to come, it should be a very exciting year.

With fuel margins and inside sales remaining extremely robust in most markets, operators are seeing very strong performances from their convenience-store portfolios. That can be a blessing and a curse.

Many operators are reluctant to sell right now because of the profits they are seeing at their stores. However, as we all know, this will not continue forever.

More importantly, the market has never been hotter for mergers and acquisitions. There is an incredible demand at present for quality companies and assets, and the multiples being paid for those assets has never been higher. Furthermore, interest rates continue at record lows, although there has been talk by the Fed of increased rates in the latter part of this year.

We are seeing a number of companies exploring their options at present. From our perspective, the timing to do this could not be better.

Dennis L. Ruben, executive managing director of NRC Realty & Capital Advisors LLC, contributes an annual and quarterly column to CSP, analyzing mergers and acquisitions and key economic trends in the convenience-store channel. He can be reached at dennis.ruben@nrc.com. He will also headline the Financial Outlook session at the 2015 Outlook Leadership Conference, Nov. 14-16 in Scottsdale, Ariz.

DEERFIELD, Ill. — The board of directors of drug store and pharmacy retailer Walgreens Boots Alliance Inc. has named Stefano Pessina as CEO, effective immediately. He had been serving as acting CEO since January.

In his capacity as CEO, Pessina will continue reporting to Executive Chairman James Skinner.

“In Walgreens Boots Alliance’s initial six months as a newly combined company, Stefano has done an extraordinary job leading the new enterprise, focusing our strategy while enhancing our financial performance,” said Skinner. “The integration of Walgreens and Alliance Boots is proceeding exceptionally well, with Stefano’s vision for the company driving the organization forward. Through his leadership, our organization is meeting the challenges of combining our two companies, and many of the opportunities we anticipated from our strategic combination are now becoming a reality. In order to continue this momentum and to recognize the progress that is already being made, the board concluded Stefano is the very best person to achieve our vision to be a truly global health care champion, the first choice for pharmacy, health care and wellbeing across the world.”

The Deerfield, Ill.-based company previously announced a $1.5-billion cost savings program through the end of fiscal 2017. During the third quarter of fiscal 2015, the company made good progress, it said, with the program including reorganizing Retail Pharmacy USA field operations and continuing to optimize its corporate office; closing nine of a planned 200 U.S. stores, with approximately 70 to 80 additional closings planned by the end of the fiscal year

The Retail Pharmacy USA division, whose principal retail pharmacy brands are Walgreens and Duane Reade, had third-quarter sales of $20.4 billion, an increase of 5.3% over the year-ago quarter. Total sales in comparable drugstores (those open at least a year) increased 6.3% compared with the same quarter a year ago. Comparable drugstore retail sales increased 1.6% in the third quarter with an increase in basket size partially offset by lower customer traffic compared with last year’s third quarter.

The division opened or acquired 104 drugstores in the first nine months of fiscal 2015, including 34 relocations, and closed 37 locations. At 31 May 2015, the division operated 8,240 drugstores across all 50 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands.

Walgreens Boots Alliance is a global pharmacy-led, health-and-wellbeing enterprise created through the combination of Walgreens and Alliance Boots in December 2014. It has a presence in more than 25 countries; it is the largest retail pharmacy, health and daily living destination in the United States and Europe with more than 13,200 stores in 11 countries. Its portfolio of retail and business brands includes Walgreens, Duane Reade, Boots and Alliance Healthcare, as well as health-and-beauty-product brands, such as No7, Botanics and Soap & Glory.

OKLAHOMA CITY — Love’s Travel Stops & Country Stores has promoted a longtime employee to a key leadership position. Roger Ahuja has been named vice president of operations for the travel center company.

“With Roger’s experience and skills as an effective business strategist, he will be an exceptional leader,” said Tom Love, executive chairman and founder of Love’s. “He’s already mentored and coached many employees who have experienced success, so this is a natural transition for him.”

In his new role, Ahuja will oversee a large portion of Love’s retail operations at the store level. He will also manage operations for two new ventures: Love’s Hospitality and Love’s Storage Solutions.

Love’s currently operates three hotels in Texas and Florida under Love’s Hospitality, and two self-storage facilities in Texas under Love’s Self Storage.

The self-storage facilities are 70,000 square feet with 517 storage units, the company told CSP Daily News.

Love’s Storage Solutions opened its first facility in Sweetwater, Texas, early this year, also next to a Love’s truck stop, and the company has plans to open six other storage facilities in the next few years, a company spokesperson said. One is scheduled to open in Las Vegas and one in Bridgeton, Mo., by next summer. Four are still in the planning stage.

Love’s opened its first hotel outside of Texas, a Sleep Inn & Suites in Mossy Head, Fla., on June 30. It is also the company’s first Sleep Inn. It is located directly across from a Love’s Travel Stop. The Sleep Inn brings Love’s hotel count to three. Love’s Hospitality made its debut in March 2014 with the opening of a Mircotel Inn & Suites by Wyndam in Pecos, Texas. Its second Microtel location opened in March 2015 in Sweetwater, Texas.

The company will continue to move forward with development of both new businesses, it said.

Ahuja began his career with Love’s in 1994 as a manager of an Oklahoma City location and has held several management and director positions over the years.

Based in Oklahoma City, Love’s has more than 350 locations in 40 states. The chain provides professional truck drivers and motorists with 24-hour access to clean and safe places to purchase gasoline, diesel fuel, travel items, electronics, snacks and more, as well as a selection of restaurant offerings. On-site Love’s Truck Tire Care centers offer roadside assistance, tire care and light mechanical services for professional drivers. It also offers showers, CAT scales and other services for professional drivers. Love’s, which is family-owned and -operated, employs more than 12,000 people.

CHICAGO — Snacking may very well be the new American pastime. According to a Mintel report, Snacking Motivations & Attitudes US 2015, nearly all Americans (94%) snack at least once a day.

Half (50%) of adults snack two to three times per day, with 70% agreeing that anything can be considered a snack. The research points to the pervasive nature of snacking today—only a year ago, 64% of consumers said they often snack between meals, Mintel’s The Snacking Occasion US 2014 report said.

Research from Chicago-based Mintel’s The Fifty highlights that more frequent snacking may be replacing standard daily meals.

Americans also claim a preference for healthier snacking, with 33% saying they are snacking on healthier foods this year compared to last year, specifically those with simple ingredients and low calorie counts; however, they most often snack to satisfy a craving (62%), highlighting the important role taste and flavor play on snacking behavior. In fact, Mintel’s Salty Snacks US 2015 report indicates that 63% of U.S. consumers value the taste of salty snacks more than their nutrition.

Millennials (consumers age 21 to 38) are significantly more likely to snack compared to older consumers, with 24% most likely to snack frequently, four or more times per day, and 23% snacking more this year compared to last year. When compared to other generations, millennial consumers are more likely to be emotional or functional snackers. The millennial generation snacks to stay focused throughout the day, with 39% snacking for energy.

Overall, 62% of U.S. consumers snack mainly to satisfy a craving. This is a strong driver for older consumers, especially those age 55 to 62 (70%). Nearly one third of consumers (31%) snack for the practical reason that it’s not the right time to eat a meal (it’s too early or too late). Other reasons are less functional and more emotional—one quarter of Americans snack because they are bored, increasing from 23% in 2014 to 25% in 2015, while 16% do so because they are stressed.

“Millennials are more likely to snack compared to older generations as a means to fulfill emotional and functional needs, including combating boredom or stress and increasing energy and focus. Older consumers did not grow up with all-day snacking and may continue to view snacks as treats,” said Amanda Topper, food analyst at Mintel. “Millennials are also more likely than older generations to indicate snacks with added nutrition and flavor variety are important to them. As a result, they may be drawn to products with high fiber, energizing claims or protein content to stay satiated, as well as bold flavors to help add variety to their frequent snacking occasions and eliminate boredom.”

Retail location and word of mouth are important influences on iGeneration/millennials’ (consumers age 18 to 38) snacking behavior. This generation is most likely to try a snack that has been recommended to them (68%) and most likely to go out of their way to buy snacks from a specific store (43%). iGen/millennials are drawn to organic snacks and products with added nutrition, including protein and vitamins. Ultimately, affordability is more important to this generation, creating an opportunity for health-focused or organic brands to reach them with low-cost snacking options.

Health plays a prevalent role in the types of snacks consumers are eating. More than one third of snackers limit their intake of sweet snacks, such as cookies, candy and ice cream (34%). This is especially true among the swing generation/World War II or consumers age 70 and older (45%). Furthermore, 33% of U.S. consumers indicate they are snacking on healthier foods this year compared to last year. The percentage of U.S. adults who snack only on healthy foods has increased over time. In 2008-09, 25% of adults claimed to snack only on healthy foods, compared to 29% in 2013-14. 

Not only are consumers eating healthier snacks, but nearly one third (30%) of parents are serving healthier snacks to their children, particularly 33% of millennial parents. While healthy snacking options are a win for U.S. parents, 42% of households with children agree there are not enough conveniently packaged snacks, such as individual portions or resealable packages. Convenience is one of the most important factors when selecting a snack; 77% of snackers prefer ready-to-eat snacks over those that must be prepared.

Despite these increases in healthy eating habits among U.S. consumers, 60% wish there were more healthy snack options; however, even though consumers want more healthy snack options, they place more importance on taste and flavor than healthfulness when making purchase decisions. When it comes to choosing snack options, 74% of consumers agree flavor is more important than brand, while 51% agree taste is more important than health.

“With a third of consumers saying they are snacking on healthier options more often this year compared to last year, there will be an increasing need for better-for-you snacks, in smaller portions and convenient formats. This addresses consumers’ desire to balance both health and indulgence,” said Topper. “Consumers, especially households with children, agree there are not enough conveniently packaged snacks, such as individual portions or resealable packages. This highlights a need for balance between convenience and affordability, knowing the importance many consumers, especially younger consumers, place on affordable snacks.”

WASHINGTON – Giving restaurants and retailers an extra year to comply, and to provide clarification on compliance, the U.S. Food & Drug Administration (FDA) is extending the date for menu-labeling requirements mandated by the Affordable Care Act in certain restaurants and retail food establishments including some convenience stores and grocery stores to Dec. 1, 2016.

The FDA issued the original rule on Dec. 1, 2014, and the original compliance date was Dec. 1, 2015.

The final rule defines “covered establishment” as a restaurant or similar retail food establishment that is a part of a chain with 20 or more locations doing business under the same name (regardless of the type of ownership, for example, individual franchises) and offering for sale substantially the same menu items.

As reported in a 21st Century Smoke/CSP Daily News Flash, the FDA received numerous requests asking it to further interpret portions of the final rule or to respond to questions asking whether specific practices would be acceptable for purposes of complying with the rule.

It also received requests asking it to extend the compliance date of the final rule based on concerns that covered establishments do not have adequate time to fully implement the requirements of the rule by the compliance date.

“These requests were submitted by a large retailer and trade and other associations, and they provide information regarding steps involved in implementation of the requirements,” the FDA said. “More specifically, the requests describe steps involved in developing software, information systems and other technologies for providing nutrition information in ways that better correspond to how foods are offered for sale in covered establishments and allow for more efficient and product-specific nutrition labeling. In addition, the requests describe steps involved in training staff, implementing standard operating procedures, and developing and installing updated and consistent menu boards across all locations within a chain. Most requests sought to extend the compliance date by one year.”

It continued, “In light of these requests, we have decided to extend the compliance date for the final rule to Dec. 1, 2016. The final rule requirements are intended to ensure that consumers are provided accurate, clear and consistent nutrition information for foods sold in covered establishments in a direct and accessible manner to enable consumers to make informed and healthful dietary choices; therefore, allowing adequate time for covered establishments to fully implement the final rule’s requirements, as described in the requests, helps accomplish the primary objective of the final rule and is in the public interest.”

The FDA said it will issue detailed guidelines next month to clarify compliance.

Click here to view the Federal Register Notice for the Compliance Date Extension.

VENTURA, Calif. — Macland Investments has selected Energy Efficiency Experts (E3) to perform LED retrofits both interior and exterior on its 37 gas stations in Southern California.

E3 has completed the first three stations in Whittier and Calabasas retrofitting all lights including the large wattage canopy and exterior lights as well as the small interior and refrigeration lights. This effort will reduce electrical consumption by about 70% on their lighting, it said.

Kevin Sullivan, director of sales for E3, said, “We are honored to have such a great relationship with Macland investments. We have been able to do more than just replace lamps. We studied their very specific needs and researched the best lamp for each unique application from our large stable of manufacturers and suppliers.”

Tustin, Calif.-based E3 is an Energy Services Company (ESCO) formed by Premier Holding Corp. to provide solutions by using proprietary technologies and industry relationships. By maintaining a “product agnostic” approach, E3 will prescribe the best solution for the unique circumstances of its clients after survey and analysis. Premier is an energy holding company focused on acquiring and integrating energy companies as synergistic subsidiaries.

Macland, based in Ventura, Calif., is a property investment company.

SAN ANTONIO – Expanding its stable of fuel brands following its spinoff from Valero, CST Brands Inc. has signed an agreement with Phillips 66 with the opening of a new Corner Store convenience-store location in Tomball, Texas, to offer Phillips 66 fuel. The move adds Phillips 66 to Corner Store’s diversifying fuel portfolio.

The agreement also gives Corner Store the ability to share branding space on the fuel canopy to gain increased street-level visibility for its popular Corner Store brand.

As reported in a 21st Century Smoke/CSP Daily News Flash, CST Brands is planning to build additional Phillips 66 sites this year. The dual-branded canopy brings increased attention and traffic to both the fuel and in-store offerings.

After spinning off of Valero Energy Corp. in 2013, CST Brands added Shell fuel to its offerings in early 2015 with the acquisition of 22 former Timewise stores in San Antonio and Austin.

“We are excited about the opportunity to link the Phillips 66 fuel brand with a strong retail operator such as Corner Store. We look forward to additional opportunities to strengthen our branded presence in the Houston market and beyond with CST,” said Mike Krampf, manager of branded sales for Phillips 66.

At 4,650 square feet, the new Tomball Corner Store has a large, spacious format and features eight fueling stations with a diesel truck island.

“We are very excited to announce this new opportunity to partner with Phillips 66,” said Kim Lubel, president and CEO of CST Brands. “This has been a very good experience, and we look forward to working with Phillips 66 as we continue to grow.”

The average new-to-industry (NTI) Corner Store rings up close to twice the volume of fuel and merchandise as a legacy store in the U.S. network. CST Brands plans to continue its growth in 2015 with the building of 45 to 50 NTI stores in the United States and Canada.

Phillips 66, Houston, is a diversified energy manufacturing and logistics company with a portfolio of midstream, chemicals, refining and marketing and specialties businesses.

San Antonio-based CST Brands has approximately 1,900 gas stations and convenience stores throughout the United States and eastern Canada. In the United States, CST Corner Stores sell fuel and signature products such as Fresh Choices baked and packaged goods, UForce energy and sport drinks, Cibolo Mountain coffee, FC bottled sodas and Flavors2Go fountain drinks. In Canada, CST is the exclusive provider of Ultramar fuel and its Dépanneur du Coin and Corner Stores sell signature Transit Café coffee and pastries. CST also owns the general partner of CrossAmerica Partners LP, a wholesale distributor of fuels that serves more than 1,100 locations across 23 states.

BOISE, Idaho — Supermarket retailer Albertsons Cos. Inc. has announced that it has filed a registration statement with the U.S. Securities & Exchange Commission (SEC) for a proposed initial public offering (IPO) of shares of its common stock.

In the filing, it said it hoped to raise $100 million to repay existing debt, to pay fees and expenses related to the offering and for general corporate purposes.

Boise, Idaho-based Albertsons incorporated Albertsons Cos. Inc. in June for the purpose of reorganizing the structure of AB Acquisition to undertake the offering.

In March 2013, Albertsons acquired a group of stores owned by Supervalu for $100 million in cash plus the assumption of an estimated $3.1 billion in debt. The deal included 871 retail food stores under Jewel-Osco, Acme, Shaw’s Star Market and Albertsons banners and 10 distribution centers.

In December 2013, Albertsons acquired United Supermarkets for $362.1 million in cash, expanding its presence in North and West Texas, in a transaction that offered significant synergies and added a differentiated upscale store format, Market Street, to its portfolio. At the time, United operated 51 traditional, specialty and Hispanic retail food stores under its United Supermarkets, Market Street and Amigos banners, seven convenience stores and 26 fuel centers under its United Express banner and three distribution centers. United is located in 30 markets across North and West Texas.

In January 2015, the company completed its acquisition of Safeway by acquiring all of the outstanding shares of Safeway for $8.3 billion. At the time of the Safeway acquisition, Safeway operated 1,325 retail food stores under the banners Safeway, Vons, Tom Thumb, Pavilions, Randalls and Carrs located principally in California, Hawaii, Oregon, Washington, Alaska, Colorado, Arizona, Texas and the Mid-Atlantic region. In addition, at the time of the Safeway acquisition, Safeway had 353 fuel centers, 15 distribution centers and 19 manufacturing facilities.

As a condition to approving the Safeway acquisition, the Federal Trade Commission (FTC) required the sale of 111 Albertsons stores and 57 Safeway stores. Haggen Food and Pharmacy purchased 146 stores in Arizona, California, Nevada, Oregon and Washington; Associated Wholesale Grocers purchased 12 stores in Texas; Associated Food Stores purchased eight stores in Montana and Wyoming; and SuperValu purchased two stores in Washington. The aggregate sales price of these stores was $327.5 million plus the book value of inventory.

The transfer of these stores to the respective buyers commenced following the closing of the Safeway acquisition and was completed in first-quarter fiscal 2015 in accordance with the asset purchase agreements.

Albertsons is one of the largest food and drug retailers in the United States. As of June 20, 2015, it operated 2,205 stores across 33 states under 18 banners, including Albertsons, Safeway, Vons, Jewel-Osco, Shaw’s, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market and Carrs. It operates in 121 metropolitan statistical areas MSAs and is ranked No. 1 or No. 2 by market share in 68% of them. It has 1,698 pharmacies and 378 adjacent fuel centers.

FRAMINGHAM, Mass. — Gulf Oil LP, a major branded marketer of energy products, has announced the expansion of its new Power Points Loyalty Program designed to help Gulf retailers increase revenue, build stronger relationships with existing customers and attract new and loyal customers.

The program awards points to Gulf customers for everyday spending at more than 28,000 online stores as well as many brick-and-mortar locations. Customers can redeem their points for Gulf gift cards, or pay Gulf Orange Card balances.

The program has no fees and requires no site upgrades or technology. Gulf is rolling out Power Points is to dealers now, and beginning on July15, Gulf gas stations will promote the program with pump signage, cashier handouts and a text-to-learn program.

New and existing Gulf customers enroll online. Once their account is set up, they begin earning points on purchases made at more than 28,000 retail and online locations, including merchants like Macy’s, Target, Walmart, Home Depot and thousands more.

As the points accumulate, customers can use them to earn free $25 or $50 Gulf Gift Cards to purchase gas or other items at any of the more than 2,500 Gulf gas stations across the nation and to pay a portion or all of their Gulf Orange credit-card bill.

In addition to aligning Gulf dealers with other national brands, the Power Points Program will help drive incremental fuel sales, increase gas stations’ Gulf Orange Card customer bases, expose them to thousands of potential new customers and encourage inside spending by increasing savings at the pump.

“This exciting loyalty program is another important part of our ongoing efforts to help every one of our Gulf dealers succeed,” said Gulf Oil Senior vice president and chief sales and marketing officer Rick Dery. “As one of the fastest growing energy companies in the nation, we continue to offer impactful programs that keep customers loyal to our iconic brand–and add fuel to our national expansion efforts while increasing our market share.”

Gulf Oil, Framingham, Mass., is a national, branded supplier of motor fuels throughout the United States. It is one of the Northeast’s largest wholesalers of refined petroleum products, and distributes motor fuels through a network of more than 2,500 branded gas stations, 12 proprietary oil terminals and more than 130 other supply points. Gulf Oil supplies gasoline, heating oil, diesel fuel, jet fuel and kerosene through its terminal network.

OVERLAND PARK, Kansas — Facing legal actions that include a challenge to its recent filing for Chapter 11, officials with the 42-store Gas-Mart USA chain revealed new details about the infighting that played a role in the company’s current financial crossroads.

According to the company’s president, David George, a key dispute is over a buy-sell agreement involving the two 50-50 shareholders, with Gas-Mart officers on one side (David George, Michael George and the George Family Trust) and Abraham J. Gustin Revocable Trust and Gregory Gustin (Abe Gustin died in 2010) on the other.

The disagreement dates back five years, George told CSP Daily News, and deals with the value of that original agreement. The main issue, he said, is “the monetary demand for their claim—over 20 times what other buy-sell agreements” are valued at.

That said, George admits the company did have cash flow problems, which eventually led to their bankruptcy filing on July 2. As reported in CSP Daily News, George and his team have taken measures to reorganize the chain’s operations and intend to emerge from Chapter 11 in a year to 18 months.

In the meantime, filings from the Gustin camp have made allegations of misappropriation of funds, alleged activity without the approval of a mutually agreed upon “custodian” and allegations that the bankruptcy itself is invalid. Lawyers representing the Gustin families did not return a request for comment by press time. George did not comment on these specific allegations.

George, however, did comment on one of the allegations. The court documents allege that Gas-Mart’s current CEO, John Tittle Jr., “did not like having to work under [the custodian John] Sopinski.” Tittle met with Sopinski in late June to discuss restructuring plans that Tittle was supposed to be formulating, stated the documents. Tittle told Sopinski that he wanted to buy the business after it got turned around with the Georges as his partners, and that “Sopinski’s salary should be cut in half because the company could not afford both of their salaries and he was not really necessary,” the documents stated.

According to George, the shareholders did go to court and made a deal to place “someone in here to give guidance on the company.”

With the opposing shareholders not living where the business operated and not active in its operations, George said the opposition wanted representation. “They put a guy in here who was drawing a large salary,” George said. “He’s the highest paid person here and wasn’t contributing to the company. He was a watchdog for the other partners for two and a half months, taking away from our time and the hours in the day.”

George said they welcome Sopinski and described the company as an “open book,” but said, “We just can’t pay the salary [they’re] demanding.”

The legal wrangling has taken “so much of management’s time” and the company has had to bare the “financial cost of that,” George said.

In recent weeks, however, George said the company has refocused its efforts on developing a plan to emerge from bankruptcy. Having secured a $1.5 million debtor-in-possession (DIP) loan from a local bank, they’ve entered into negotiations with suppliers to restock both fuel and grocery inventories.

“It’s been an extreme amount of work,” George said. “And we have a strong plan to emerge [from bankruptcy].”