Hess Taps Goldman Sachs for Retail Network Selloff
SAN FRANCISCO – Hess Corp. has selected Goldman Sachs Group Inc. to sell its retail network as it moves toward becoming a strictly exploration and production company, according to a report by the Wall Street Journal.
At the end of 2012, the Hess network consisted of 1,361 gas stations and convenience stores. The company announced in March that it would leave the convenience store industry, following investor group Elliott Management Corp.'s purchase of a 4-percent stake in Hess and its request that the oil company spin off or sell its retail division and separate itself into three divisions, as CSNews Online previously reported.
Hess is seeking a price in the low single-digit billions, according to the news outlet. Analysts have valued Hess’ retail division at $1.2 billion to $2.5 billion, with the potential to be worth as much as $3.4 billion.
More than 90 percent of Hess' sites are company operated and include c-stores.
Despite the selection of Goldman Sachs, Hess may still decide to pursue a spinoff rather than a sale, insiders said.