Cumberland Farms Shedding Gulf Oil Business
FRAMINGHAM, Mass. — The New England convenience and fuel retailing landscape continues to change rapidly. Just days after 7-Eleven Inc. announced its planned purchase of Tedeschi Food Shops Inc., the Haseotes family, owner of Cumberland Farms Inc., is reportedly selling off its Gulf Oil LP fuel business.
According to a source close to the transaction, the business will be sold to Boston-based private equity firm ArcLight Capital Partners for more than $1 billion.
As first reported by Oil Price Information Service (OPIS), Gulf employees were told of the pending move at the company's Framingham headquarters in May.
Sunoco LP, Speedway LLC parent Marathon Petroleum Corp. and Global Partners LP were among the finalists that also submitted "ambitious bids" for Gulf Oil, which had been up for bid since October, OPIS reported.
The deal with ArcLight could close as early as late July or early August, a source told CSNews Online. Once completed, the Haseotes family will concentrate on expanding the Cumberland Farms convenience store brand.
This deal represents ArcLight's first venture into the branded fuels business, as it will pick up a network of more than 2,500 sites in 30 states. According to OPIS, Gulf also owns a transportation fleet of nearly 200 trucks and a network of unbranded fuel sales via proprietary and third-party terminals.
When contacted by CSNews Online, Gulf Oil said it does not comment on the company’s ongoing strategic and operating matters, and particularly "not on rumors and/or speculative matters."
ArcLight has invested more than $13 billion in 90 transactions since it was founded in 2001. The private equity firm did not return a phone call seeking comment.
Convenience store assets have been in high demand recently due to rising profits thanks to high-margin foodservice offerings and lower gas prices. In 2014 and thus far in 2015, several high-profile convenience store and fuel mergers and acquisitions have taken place.