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DENVER -- BP has sold 50 of its 100 gas service stations in Colorado to K&G Petroleum LLC, a private company based in Lone Tree, a suburb of Denver, according to a report in the Denver Business Journal.
Jack Rigg, the Colorado spokesman for London-based BP, said the company informed the governor's office that the 50 BP stations in Colorado had been sold.
Terms weren't disclosed; the sale is expected to close by the end of the year. Analysts say the deal could be worth up to $100 million.
The stations sold to K&G will continue to operate as gas stations, Rigg said.
"One of the reasons that we were impressed by K&G is they indicated an interest in operating these outlets as gasoline retail outlets and retaining our employees who qualify," he told the Business Journal.
K&G wanted the BP stations for several reasons, said Byron Cook, business development manager for K&G.
"We've always been interested in growing our business and this was a tremendous opportunity due to the quality of BP's assets," Cook said. "They have good locations and aren't rundown, shabby facilities. We've been very impressed by the BP people. They're run by good people."
About 250 BP employees, from station managers to cashiers, work at the BP stations. Many of those are expected to stay with K&G, Cook told the Business Journal.
K&G, which started about 15 years ago, owns 17 stores in the Denver metro area selling gasoline under the Conoco brand. The company also owns eight stores in Oklahoma -- seven in Tulsa operating under the Phillips brand and one in Ponca City that operates under the Conoco brand. K&G also manages 17 Shell-branded stores, Cook said.
K&G is talking to suppliers about supplying and branding the 50 BP stores involved in the sale, Cook said.