Houston-based Par Petroleum Corp. has reached an agreement to acquire the locally based parent company of Mid Pac Petroleum, the exclusive licensee of the “76” brand in the state of Hawaii.
The deal totals approximately $107 million and is subject to adjustment as set forth in the merger agreement.
Mid Pac operates or distributes through more than 80 retail sites and four terminals across Hawaii.
“Acquiring Mid Pac will provide a unique expansion opportunity for our Hawaii business. The access to additional retail sites will provide synergies by increasing on-island sales of our refined products, optimizing distribution costs and enhancing crude slate flexibility,” said William Monteleone, chief executive officer of Par Petroleum. “In addition, Mid Pac’s fee-owned real estate portfolio, consisting of retail locations, terminals and office space, provides excellent underlying asset value.”
In September 2013, Par Petroleum finalized the acquisition of Tesoro Hawaii, which included the larger of the State’s two petroleum refineries, related product storage and distribution assets and 31 Tesoro-branded gasoline stations on Oahu, Hawaii Island and Maui, under the new LLC, Hawaii Independent Energy.
The added local gasoline and diesel sales for the Hawaii Independent Energy refinery in Kapolei will spell benefits for Hawaii, noted Peter Coxon, Par’s chief operating officer. “The increased local sales will enable HIE to better optimize its operations and production slate, providing Hawaii with stronger on-island refining capability, high-quality manufacturing jobs, and a more secure energy supply,” he said.
In a press release, Jim Yates, president and chief executive officer of Mid Pac Petroleum said no staffing changes are expected as a result of the transaction.
“I’m excited about what this means for Mid Pac and its employees,” he said. “The joining of HIE and Mid Pac creates a strong, vertically integrated Hawaii-based refining and marketing company which provides stability for our employees and dealers and strengthens an important energy source for Hawaii.”
Details of the transition have yet to be worked out, Par Petroleum said.
The transaction is expected to be finalized sometime in the third quarter of 2014, subject to regulatory and other approvals.