WOODBRIDGE, Va. -- Petroleum Marketing Group Inc. (PMG) has closed on the acquisition of 13 convenience stores, a large number of supply-only contracts and all the other associated business assets formerly owned and controlled by Ocean Petroleum Inc. and its affiliated companies.
Ocean Petroleum's owner, Ed Ellis, wanted to retire, and PMG is in the same market, a source told CSP Daily News. The companies have had a longstanding business relationship, and PMG will retain all of the employees.
As reported in a 21st Century Smoke/CSP Daily News Flash, Newark, Md.-based Ocean Petroleum's sites and accounts are located on the East Coast from northern New Jersey to Virginia.
Washington-based Petroleum Capital & Real Estate LLC (PetroCapRE) acted as the exclusive financial advisor to PMG. It provided professional assistance in the initial financial due-diligence process, acquisition modeling, contract negotiations and procurement of capital required to close the overall transaction.
"This was a great opportunity for our client to expand its retail network, customer base and management team within PMG's current geographic footprint," said John Sartory, managing director and principal of PetroCapRE.
PetroCapRE, provides buy-side advisory, financial restructuring, capital raises of debt and equity and corporate advisory and valuation services for clients exclusively in the retail petroleum industry. It has facilitated the closing of more than $1.2 billion in transactions.
Ocean Petroleum is a distributor/wholesaler of branded and unbranded motor fuels founded in 1976. It owns and operates a chain of retail outlets named the Winerack, upscale wine and beer specialty stores that also feature a branded fuel offering.
With 85 company-owned and -operated stores and 500 operated by dealers and commissioned agents in Virginia, Maryland and Washington, D.C., and New Jersey, PMG, Woodbridge, Va., bills itself as one of the largest multibranded petroleum dealers in the Mid-Atlantic and Northeast regions, offering the Shell, Exxon, BP, Mobil, Sunoco, Gulf, Crown and CITGO brands. Founded in 1991 with one store, the company distributes fuel to all dealer sites and its commission agent sites.
In April 2013, PMG became the area developer for the Circle K brand in key areas of New Jersey. PMG is a full-service provider in the industry, with services including gas station and convenience store design, site engineering, construction, project financing, environmental management and fuel supply and delivery.